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{{propApi.successMessage}} {{region}} Change locationABS data shows mixed signals for Tasmanian housing approvals
ABS data shows mixed signals for Tasmanian housing approvals
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Detached house approvals rose 14.5 per cent in March to 213, according to the latest data, providing a short term boost for builders. However, approvals remain 1.5 per cent lower over the past 12 months, highlighting the stop start nature of new home construction across the state.
Housing Industry Association (HIA) Executive Director Tasmania Benjamin Price said the figures reinforce that demand for housing remains solid, but supply-side constraints continue to hold the market back.
“The monthly lift in detached approvals is welcome, but the longer term trend shows Tasmania is struggling to maintain momentum,” Mr Price said.
“The biggest handbrake on new housing right now isn’t demand, it’s the lack of affordable, shovel ready land coming onto the market.”
Mr Price said builders are increasingly ready to build, but delays in land release and infrastructure provision are preventing projects from getting underway.
“If we want to see more homes built and ease pressure on housing affordability, governments must prioritise the timely delivery of serviced land at prices households can actually afford,” he said.
Multi unit approvals remain extremely low on a monthly basis, with just two units approved in March. While Tasmania is not traditionally a large unit market, Mr Price warned that emerging momentum must not be lost.
“Unit approvals have effectively been wiped out month to month, but over the past 12 months approvals have nearly doubled to 160 units,” he said.
“That tells us there is demand for more diverse housing options, particularly in well located areas, and we cannot afford to lose that momentum.”
Mr Price said medium density housing will play an important role in meeting Tasmania’s future housing needs, particularly as population growth and household formation continue to put pressure on supply.
“Detached housing will always be a cornerstone of Tasmania’s market, but units and townhouses are essential if we’re serious about improving affordability and increasing overall supply,” he said.
“Planning systems, zoning and infrastructure delivery all need to support that outcome.”
“The Tasmanian Government’s Improving Residential Standards planning reforms could go some way to improving higher density development in Tasmania – but we need to see action in this space now”.
HIA continues to call on all levels of government to accelerate land supply, streamline approvals and remove barriers to housing delivery to ensure builders can respond to demand and deliver the homes Tasmanians need.
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