June’s building approvals data delivered good news for housing supply with numbers up 11.9% to 17,076 dwellings, the strongest monthly result in nearly two years, according to the Australian Bureau of Statistics.
The spike was largely due to a 33.1% increase in multi-unit approvals, while house approvals dipped slightly (-2.0%) for the month.
Over the full 2024/25 financial year, 187,330 dwellings were approved, 13.9% more than the previous year. Multi-unit approvals rose 27.9% over the year, while detached house approvals grew 6.1%.
While the turnaround is welcome, the Housing Industry Association (HIA) cautioned that these figures still fall short of the 240,000 approvals per year needed to meet the federal government’s housing targets.
“Multi-unit activity, in particular, needs to do more heavy lifting. Multi-unit commencements need to double from current levels in order to achieve the government’s housing targets,” HIA Senior Economist Tom Devitt said.
“This is unlikely to occur under current policies. Labour and land shortages, obstructionist regulations and punitive surcharges on institutional investors have pushed improving sentiment away from apartments back into the detached housing sector.
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