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{{propApi.successMessage}} {{region}} Change locationSolid apartment approvals fail to reverse housing slowdown in ACT
Solid apartment approvals fail to reverse housing slowdown in ACT
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HIA Executive Director ACT & Southern NSW, Geordan Murray, said the headline approval figures mask significant differences between the various housing types.
"A recovery in the supply of apartments that began in 2025 has seen this part of the market grow to account for almost two-thirds of all dwelling approvals in the ACT.
“With 279 apartments approved in June, it was a reasonably solid month - the second strongest month so far in 2026. However, a strong monthly result should not automatically be interpreted as a broad-based strength.
“The June result follows on from series of weaker months for apartment approvals, and the June quarter this year was 43 per cent down on the same period a year earlier. The momentum that emerged through the second half of 2025 has clearly dissipated.
“The 'Missing Middle' reforms are intended to rebalance supply and facilitate more lower density housing types, although the impact of these reforms will only become evident later in the year.
"The detached housing market remains constrained by affordability pressures and subdued consumer confidence, while decisions to progress medium-density projects were likely delayed pending the passage of the ‘Missing Middle’ reforms through the legislative assembly.
Mr Murray said the industry continues to face a combination of headwinds.
"Households remain cautious following the interest rate increases earlier this year, higher fuel prices have increased construction costs, and the Federal Government’s housing tax changes have further unsettled an already fragile market.
"When households are uncertain about the future, many choose to delay major financial decisions such as building a new home.
"Until households, builders and developers regain confidence, residential building activity is likely to remain below the levels needed to meet the ACT Government's commitment to deliver 30,000 homes by 2030," Mr Murray concluded.
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