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{{propApi.successMessage}} {{region}} Change locationBuilding approvals strengthen in March quarter
Building approvals strengthen in March quarter
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The Australian Bureau of Statistics today released its monthly building approvals data for March 2025 for detached houses and multi-units covering all states and territories.
“Much of the improvement over the last year has come from multi-unit approvals, which were up by 52.6 per cent on the very low levels a year earlier, while detached approvals are up by a more modest 4.2 per cent,” added Mr Devitt.
“Despite the improving numbers over the last year, building approvals are still running at around 180,000 per year, well short of what is required to commence 1.2 million homes over 5 years.
“It is also important to remember that many recent apartment approvals are likely to be ‘faux’ approvals.
“A change in market conditions have meant that a number of apartment projects that were already approved for construction will need to seek re-approval and comply with the new construction code. The higher cost of construction will further impair sales volumes.
“There are a very large number of apartments approved for construction across capital cities, but only a small number of these will commence construction. Punitive taxes that effectively exclude certain investors from the market add further time and difficulty in finding buyers for new apartments, even after they have been approved.
“Multi-unit activity needs to be twice as large as recent levels for the Australian government to achieve its target of 1.2 million new homes over five years.
“As it stands, the government is set to fall almost 20 per cent short of its own target and a few interest rate cuts from the RBA won’t be sufficient to increase the supply of homes to meet the 1.2 million target,” concluded Mr Devitt.
“Home building approvals in the March quarter 2025, in seasonally adjusted terms, were up by 49.4 per cent in South Australia, followed by Western Australia (+27.3 per cent), New South Wales (+25.8 per cent), Victoria (+22.1 per cent) and Queensland (+0.8 per cent), while Tasmania was down by 12.9 per cent. In original terms, the Northern Territory was up by 81.5 per cent and the Australian Capital Territory was up by 43.8 per cent.
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