"Mountain to climb" as new home building activity falls
The monthly dwelling approval update by the Australian Bureau of Statistics again painted a grim outlook for Australia's new-build environment.
Total dwellings approved fell 3.6 per cent in November to 14,998.
There were most positives found in Victoria and Queensland where dwelling approvals remained stable and closer to their targets, although New South Wales is tracking well behind where they're forecasted to be.
The total number of dwellings approved in NSW was 42,109 over the 12 months until November 2024, 34,000 short of meeting the National Housing Accord quota for NSW.
"Despite a range of State and Federal programs designed to promote housing supply, dwelling approvals data from the last 12 months shows a chronic trend in the wrong direction," Urban Taskforce CEO Tom Forrest says, adding the new data shows there is a "mountain to climb".
"The data for NSW shows that Premier Minns is on the right track in looking to fast-track planning through the Housing Delivery Authority and through changes to the planning laws. The key to success will be through ensuring that new housing and employment remain the focus, and that planners don’t become distracted with other portfolio imperatives."
There has been a -10 per cent annual decline in approvals across all housing typologies in New South Wales. Apartment approvals declined a massive -26 per cent in the 12 months to November.
Stuart Ayres, CEO of the Urban Development Institute of Australia (UDIA) NSW, says the NSW Government has a lot of work to do in 2025 to turn around the housing supply crisis that continues to inflict more pain on future homeowners.
"With approvals in the detached house market sitting at a 10-year low, it is important that the Housing Delivery Authority (HDA) remains ambitious in supporting greenfield subdivisions," Ayres says.
"The hope of the side at the moment is the Housing Delivery Authority. It is absolutely critical that it facilitates high demand and more feasible greenfield development and subdivisions, and not focus exclusively on less feasible infill projects."
Multi-unit approvals in the three months to November 2024 climbed significantly in Western Australia (+207.5 per cent) compared to the corresponding period in the previous year. This was followed by Queensland (+16.0 per cent), Victoria (+9.4 per cent) and New South Wales (+1.6 per cent). The Northern Territory registered a flat result. Declines were recorded in Tasmania (-85.7 per cent), the Australian Capital Territory (-82.4 per cent), and South Australia (-15.1 per cent).
