{{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location {{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change locationInterest rate cuts boost building approvals
Interest rate cuts boost building approvals
Member and guest login
Enter your email and password to access secured content, members only resources and discount prices.
Did you become a member online? If not, you will need to activate your account to login.
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
Forgotten password
Need some help?
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
If the email address you have entered is registered, you will receive an email with further instructions.
Become part of the HIA community
Enables quick and easy registration for future events or learning and grants access to expert advice and valuable resources.
Create a guest account
Enter your details below and create a login
The Australian Bureau of Statistics today released its monthly building approvals data for May 2025 for detached houses and multi-units covering all states and territories.
“New house approvals were 1.1 per cent over higher in the three months to May compared to the previous quarter,” added Mr Devitt.
“Building approvals have followed other leading indicators to show that new home buyers are increasingly returning to the market,” added Mr Devitt.
“With two interest rate cuts in the back pocket, and further cuts expected, more buyers are able to sign that contract for a new home build.
“Western Australia, Queensland and South Australia were already seeing improved numbers on the ground on the back of strong population dynamics, recovering household incomes and low unemployment. Now New South Wales and Victoria appear to be joining the party.
“It is higher density housing that remains constrained.
“Multi-unit approvals in the last three months were 25.0 per cent higher the same quarter a year earlier, but recent activity is likely driven by ‘phantom approvals’.
“Some apartment projects that were already approved for construction but hadn’t commenced yet, are returning for re-approval ahead of the introduction of the National Construction Code 2022 which will increase construction costs further.
“But you can’t live in an approval. These projects, which have not been viable over recent years, are unlikely to get the necessary sales to commence construction over the next couple of years. Securing apartment pre-sales at current market prices have been challenging.
“Multi-unit commencements need to double from current levels in order to achieve the government’s housing targets. This is unlikely to occur if state governments continue to impose additional taxes on institutional investors.
“The recent NSW State Budget commitment to guarantee apartment pre-sales will see a tangible increase in the commencement of apartments in Sydney.
“Regardless of the increase in approvals, the volume of commencements will fall more than 20 per cent short of the government’s goal of building 1.2 million homes,” concluded Mr Devitt.
Total home approvals in the three months to May 2025, in seasonally adjusted terms, increased in South Australia by 29.4 per cent compared to the same quarter a year earlier. This was followed by Queensland (+18.6 per cent), Western Australia (+14.9 per cent), New South Wales (+8.6 per cent) and Victoria (+0.1 per cent), while Tasmania declined by 13.4 per cent. In original terms, approvals in the Northern Territory rose by 15.2 per cent over the same period, and by 1.0 per cent in the Australia Capital Territory.
For more information please contact:
Land prices a roadblock to 1.2 million homes target
“The median price of residential land sold nationally jumped by 6.8 per cent over the 2024/25 financial year, more than three times faster than consumer price inflation over the same period,” stated HIA Chief Economist Tim Reardon.
Time to stop playing politics and fast track overdue EPBC reforms
“The Housing Industry Association (HIA) is calling on all parties to park the games and fast track the delivery of the long overdue EPBC reforms by the end of this year,“ HIA Managing Director, Jocelyn Martin said today.
Audit must not slow delivery of new homes under HAFF
The Housing Industry Association (HIA) welcomes the announcement of an audit into the Housing Australia Future Fund (HAFF) but cautioned that the review should not delay or derail the urgent task of increasing Australia’s housing supply, HIA Managing Director Jocelyn Martin said today.
Rezoning paves the way for Gosford City Centre transformation
“The announcement that the NSW Government will fast-track a major rezoning of Gosford City Centre, unlocking 1,900 new homes across 283 hectares, provides an exciting opportunity for the Central Coast,” commented HIA Hunter Executive Director, Craig Jennion.