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{{propApi.successMessage}} {{region}} Change locationBuilding approvals pick up 2024/25
Building approvals pick up 2024/25
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The Australian Bureau of Statistics today released its monthly building approvals data for June 2025 for detached houses and multi-units covering all states and territories.
“Detached house approvals increased by 6.1 per cent in the financial year, while multi-unit approvals were up by 27.9 per cent,” added Mr Devitt.
“Strong population growth, tight labour markets and recovering household incomes helped improve confidence in an increasing number of markets over the last 18 months, led by Western Australia, Queensland and South Australia.
“Interest rate cuts from the Reserve Bank in February and May this year, with the expectation of more to come, will help bring more potential homebuyers back to the market in the lagging – and often more expensive – states and territories.
“The challenge will be turning this modest improvement in conditions into the kind of recovery that will meet the Australian Government target of 1.2 million homes over five years.
“In the 2024/25 financial year, the first year of the government’s five year target, Australia approved just 187,330 new homes. Given that some approved projects don’t ever commence construction, the goal of commencing 240,000 homes per year remains a distant goal.
“Even with lower interest rates, Australia is set to start just 200,000 homes per year, on average, over the next four years.
“Multi-unit activity, in particular, needs to do more heavy lifting. Multi-unit commencements need to double from current levels in order to achieve the government’s housing targets.
“This is unlikely to occur under current policies. Labour and land shortages, obstructionist regulations and punitive surcharges on institutional investors have pushed improving sentiment away from apartments back into the detached housing sector.
“Sustained improvement in multi-units activity will need to come from a reduction in policy burdens on the sector, or a re-acceleration of home prices until new projects are viable against higher policy costs, the latter not boding well for affordability,” concluded Mr Devitt.
Total new dwelling approvals in the 2024/25 financial year, in seasonally adjusted terms, increased in Western Australia by 32.3 per cent and South Australia by 28.7 per cent, followed by New South Wales (+16.0 per cent), Queensland (+13.1 per cent) and Victoria (+9.1 per cent). Tasmania declined by 9.9 per cent. In original terms, the Northern Territory increased by 22.5 per cent while the Australian Capital Territory declined by 39.9 per cent.
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