The number of dwellings approved increased in October, Australian Bureau of Statistics (ABS) data showed, reflecting an increase in apartment developments greenlighted in New South Wales and Victoria.
Total number of dwellings approved rose 6.1 percent year over year to 15,498 in October. In nine or more storey blocks, 2,782 apartments received approval in October, the most high-rise apartments approved since January this year.
Private sector dwellings excluding houses climbed 7.1 percent to 5,859 while private sector house approvals inched 2.4 percent higher to 9,191.
“Households are returning to new home building despite there being no cut to the cash rate. This is because unemployment remains at very low levels, while housing demand remains very strong,” said Maurice Tapang, Housing Industry Association (HIA) economist.
“Low unemployment, unchanged interest rates, stable growth in materials prices and a return to normal build times are helping lift up the market from its recent trough.”
Tapang noted that October witnessed the highest number of approvals in almost two years.
Similarly, the Property Council of Australia (PCA) lauded the uptick but reminded that the volatile numbers need to stabilise in a continued upward direction.
“Apartments are an integral part of our housing ecosystem and can positively tip the supply equation at scale, and we need to get back to the construction levels seen nearly 10 years ago,” said Matthew Kandelaars, PCA policy and advocacy executive.
“We are now six months into the National Housing Accord’s ambitious target of delivering 1.2 million new homes and we cannot allow the target to slowly fade into the background over the next four and a half years.”
Kandelaars noted that while dwelling approvals rose in October, only 56,797 apartments and townhouses were approved over the last 12 months.
South Australia to Receive Housing Boost
Meanwhile, the Albanese government pledged $70 million to South Australia to fast-track 3,641 dwellings in key growth areas.This includes 1,000 new homes in Thebarton, at least 200 of which will be affordable, along with 700 affordable homes in the City of Playford.
“We’re pulling every lever to fix this problem—streamlining planning approvals, incentivising our construction workforce, and implementing ambitious policies to get more Australians into more homes more quickly,” said Catherine King, Minister for Infrastructure.
“We’re putting pipes in the ground and easing traffic congestion so the housing sites are ready for construction to begin,” said Nick Champion, South Australian Minister for Housing and Urban Development.
