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{{propApi.successMessage}} {{region}} Change locationTas housing is lifting - approvals and serviced land must keep up
Tas housing is lifting - approvals and serviced land must keep up
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HIA Executive Director Tasmania, Benjamin Price, said the indicators show encouraging momentum but warned the early signs of recovery will not translate into new housing unless the pipeline of approvals improves.
“Tasmania’s residential building market is showing early signs of recovery, as detached housing begin to lift,” stated HIA Executive Director Benjamin Price.
“Commencements are creeping upward, albeit slowly, and lending is strengthening. Demand from Tasmanians who want to build a home is clearly still there,” Mr Price said.
“But we cannot expect an uplift in activity to continue while approvals and serviced land remain constrained.”
According to the Outlook Report, detached dwelling commencements are expected to hold at 2,260 in 2025/26, showing a slight increase on the previous year, and are forecast to rise to 2,480 in 2026/27 and 2,600 in 2027/28 before peaking at 2,610 in 2028/29.
“Multi-unit starts rose to 200 in 2025/26, up 22.8 per cent, and are expected to continue growing over the next three years. This segment of the market remains constrained by project feasibility and a lack of investment.
“Finance activity is also pointing upward. Lending for new dwellings rose 6.5 per cent in the December quarter, and loans for residential land increased 11.7 per cent, indicating that demand to build remains solid across the state.
“The tripling of the First Home Owner Grant to $30,000 until mid-2026 continues to push more first time buyers into new construction, although the program runs only until the end of this financial year.
“Approvals appear to have slowed and are not keeping pace with demand. Detached approvals fell 13.1 per cent in the December quarter and were 2.3 per cent lower across 2025, while apartment approvals declined by 44.6 per cent. This widening gap between demand and approvals poses a risk to the state’s ability to deliver enough homes in coming years.
Mr Price said the State Government’s move to expand the Urban Growth Boundary is welcome, but must be followed with rapid investment in serviced, developable land.
“Tasmania has an opportunity to support a steady recovery in home building,” he said. “But unless land is unlocked and approvals improve, this early momentum will be lost.”
HIA’s Tasmania Outlook (Summer 2026) is available for purchase.
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