NEW home building approvals rose by 13.9 per cent in 2024/25 compared to their 2023/24 trough, according to the Housing Industry Association (HIA).
“Detached house approvals increased by 6.1 per cent in the financial year, while multi-unit approvals were up by 27.9 per cent,” HIA Senior Economist Tom Devitt said.
“Strong population growth, tight labour markets and recovering household incomes helped improve confidence in an increasing number of markets over the last 18 months, led by Western Australia, Queensland and South Australia,” he said.
But Mr Devitt warned that despite interest rate cuts in February and May, Australia approved only 187,330 new homes—well short of the government’s annual target of 240,000.
“Multi-unit activity, in particular, needs to do more heavy lifting,” he 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.”