Today’s ABS figures on building approvals in NSW show worrying results for the NSW Government and those wanting a home of their own.
The latest ABS data show continuing declines in housing approvals;
- 10% annual decline across all housing typologies;
- 3% annual decline for detached houses;
- 26% annual decline for apartments, alarmingly this is compared to a 20% decline reported in the previous month.
“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,” said Stuart Ayres, CEO of the Urban Development Institute of Australia (UDIA) NSW.
With approvals in the detached house market sitting at a ten-year low, it is important that the Housing Delivery Authority (HDA) remains ambitious in supporting greenfield subdivisions.
“The hope of the side at the moment is the Housing Delivery Authority, it’s absolutely critical that it facilitates high demand and more feasible greenfield development and subdivisions, and not focus exclusively on less feasible infill projects,” said Stuart Ayres.
NSW needs more of all types of housing. The HDA program is unashamedly a pathway for progressing already conceived projects, however today’s approvals data show that it will need to do more heavy lifting across the board, or approvals and completions will keep heading in the wrong direction.
Most concerningly, apartments continue to struggle, with approvals declining at a faster rate. The NSW Government must focus policy settings on supporting feasibility and finalise the Low and Mid-Rise Policy as soon as possible to kickstart apartment projects with increased permissibility across the Sydney Megaregion.
In addition to a focus on feasibility and the much anticipated Low and Mid-rise reforms, UDIA NSW also encourages the Government to finalise its work on financial support for presales commitments and loan underwriting that was announced in the last budget. This type of support will see more projects get under construction earlier.
“A number of crucial policy initiatives slipped from 2024 into 2025, the Government must maintain its focus and urgency when it comes to getting new homes approved and completed,” said Stuart Ayres.
Approvals are the forerunner to completions, we know if approvals are down we are only getting further away from our housing targets.
Source: ABS, UDIA NSW
–ends–
Media Enquiries: Deanna Lane, Director of Media & Communications
UDIA NSW and National dlane@udiansw.com.au 0416 295 898