The Property Council of Australia said today’s approval data is another reminder of the tough road ahead to reach our housing goals.
The total number of approved homes decreased by 8.8 per cent in March to 15,220, according to seasonally adjusted data released today by the Australian Bureau of Statistics.
Australia must build over 20,000 homes each month to reach our target of 1.2 million new homes by 2029.
Approvals for apartments fell 27.4 per cent to 3,055. Despite the drop, approvals are 79.3 per cent higher than one year ago.
The overall decline was largely due to a drop in new apartment approvals, with Victoria recording just 671 approvals in March, down sharply from 2,294 in February (original terms).
Meanwhile, approvals for single-family homes fell by 4.5 per cent in March.
Property Council Group Executive Policy and Advocacy Matthew Kandelaars said while apartment approval numbers are volatile, we need to see consistent increases to help reach our housing targets.
“March saw a fall in approvals across all housing types, with a particularly stark fall in apartment approvals reflecting the challenges faced to hit our national housing target.
“Apartment approval data is volatile, but their long project timelines need stable tax and planning policies. Certainty is critical when these projects take years to build.
“Even once a project is approved, labour shortages, state-based development-killing taxes and elevated construction costs are all putting pressure on new housing starts. We need an ‘all-in’ approach to turn these figures around.
“The past three years have established the strong foundations for Australia to build more homes, and with the election behind us, now it is time to shift to the delivery phase.
“We look forward to early industry engagement to get the detail of the government’s election commitments right and to maximise their housing benefits right across the country.”