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{{propApi.successMessage}} {{region}} Change locationApprovals increase a welcome but further work needed on regulatory burdens
Approvals increase a welcome but further work needed on regulatory burdens
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Last week’s ABS data release on building approvals showed an increase in Tasmania in the month of May 2026.
Today’s ABS figures show detached house commencements in Tasmania fell 5.6 per cent to 610 in the March 2026 quarter. Multi-unit commencements rose 63.6 per cent to 36, though off a very low base. Total commencements came in at 646 for the quarter, down 3.3 per cent.
Over the year to March 2026, Tasmania started 2,422 new homes, up by 1.3 per cent on the previous 12 months. Detached starts rose 3.4 per cent to 2,317, while multi-unit starts fell 30 per cent to 105.
The approvals picture is stronger. Total building approvals rose 14.7 per cent over the year to 2,683, with house approvals up 9.6 per cent to 2,438 and other dwelling approvals more than doubling to 245.
HIA Executive Director, Tasmania, Benjamin Price said the numbers show the bottleneck in the system is not demand.
“The increase in approvals comes off a very low base and nowhere near what is required to meet demand in Tasmania are coming through. Detached starts went backwards this quarter even though approvals for detached homes are up almost 105 per cent over the year, so the hold-up isn't demand. It is everything that in the ground down goes into getting a home approved for construction, well-before a slab is laid.
“Governments need to remove some of the lengthy hurdles to obtaining an approval. That comes down to planning timeframes, additional regulatory burdens, land servicing and the up-front cost of getting a project started.”
HIA is continuing to call on the Tasmanian Government to honour its commitment to reform plumbing approval processes, to slash costs and timeframes for new housing.
“The Tasmanian Government made a clear commitment in February 2025 to slash red tape for plumbing approvals in Tasmania. Unfortunately, following the 2025 election, that commitment appears to have been watered down into a much weaker reform proposal,” Mr Price said.
“If Tasmania is going to convert more approvals into commencements, the Government needs to deliver the critical reforms it promised to help speed up the delivery of new homes across the state.”
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Update: contracts signed before 1 July 2026 and optional cover
HIA will continue to update you as we receive further advice and information on the ongoing transition from Domestic Building Insurance (DBI) to the First Resort Home Warranty Scheme (FRHWS).
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