Urban Development Institute of Australia NSW (UDIA) expresses ongoing concern at today’s Australian Bureau of Statistics data, which confirms that NSW’s 2024 calendar year was its most disappointing for building approvals in 12 years.
The data released today revealed that the 42,800 new building approvals across NSW in 2024 were 5% below that of 2023, and a significant 42% lower than the calendar year peak of over 73,000 approvals in 2016.
“Building approvals remain our best indicator of future supply. With the disappointment of 2024 still top of mind, it is time that Government looks to 2025 and beyond to get NSW back on track to achieve our state’s share of the National Housing Accord targets,” said Stuart Ayres, CEO, UDIA NSW.
The differences between the highs of 2016 and lows of 2024 can be seen across all housing typologies, but are most pronounced in the apartment market where new approvals sit more than 22,000 lower than in 2016.
“The sharp declines in apartment approvals reinforce UDIA’s ongoing messaging that the combination of weak feasibility and slow planning reform has led to a failure to implement the immediate step change that was desperately needed in infill development to achieve the Accord target of 75,000 new homes a year,” said Stuart Ayres.
The detached housing market has also fared poorly, with approvals falling below 22,000 in the 12 months to December 2024, for the first time since January 2014.
While industry continues to wait for details on the Low and Mid-Rise Reform, and while the Housing Delivery Authority deliberates its first tranche of EOIs, UDIA strongly encourages Government to remain focused on supporting the more feasible greenfield market.
“Without a pivot back to feasible greenfield development with a diversity of housing typologies, NSW will keep falling further behind its housing targets,” said Stuart Ayres.
“These poor building approvals reinforce the desperate need for reform of the Planning Act and urgency in implementing the Low and Mid-Rise reforms,” said Mr Ayres.
Source: UDIA NSW, ABS
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Media Enquiries: Deanna Lane, Director of Media & Communications
UDIA NSW and National dlane@udiansw.com.au 0416 295 898