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{{propApi.successMessage}} {{region}} Change locationCut to the cash rate not enough to boost housing recovery
Cut to the cash rate not enough to boost housing recovery
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The Australian Bureau of Statistics today released its monthly building approvals data for August 2025 for detached houses and multi-units covering all states and territories.
“The month of August saw a slight decline in the number of new detached house approvals across Australia, down by 2.9 per cent,” added Mr Devitt.
“Despite the monthly decline, house approvals in the last three months were still relatively consistent with a year earlier, down by just 0.9 per cent, comfortably above the 2023 trough in the cycle.
“Declining interest rates, strong population growth, tight labour markets and recovering household incomes helped improve confidence in an increasing number of markets over the last 18 months.
“Western Australia, Queensland and South Australia led the improving numbers across the country, while other jurisdictions were held back by higher land costs and relatively weaker population dynamics.
“Despite the improvement, the volume of home approvals hasn’t seen a recovery to levels consistent with the ongoing growth in demand.
“Lower interest rates alone will not be sufficient to produce 1.2 million new home builds over the Australian government’s target five-year period.
“Higher density housing, in particular, needs to do much more heavy lifting, with multi-unit approvals declining again by 10.6 per cent in August, back to the depressed levels ofthe last six years.
“If Australia is to meet its housing targets and improve housing affordability, policymakers need to reduce the costs of construction that they inflate with needless and destructive taxes, regulations, restrictions and costs,” concluded Mr Devitt.
The volume of detached house approvals in the month of August 2025 in seasonally adjusted terms increased in only Victoria (+5.8 per cent), while declines were seen in South Australia (-9.1 per cent), Western Australia (-6.8 per cent), New South Wales (-5.0 per cent) and Queensland (-1.0 per cent). In original terms, detached house approvals increased in Tasmania (+18.3 per cent), declining in the Australian Capital Territory (-15.5 per cent) and the Northern Territory (-2.4 per cent).
Monthly Building Approvals - Australia
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