Building approvals remain steady but well below target
Over the year to February, 177,400 new homes were approved - well below the 240,000 annual target.
NEW home building approvals fell by 0.3 per cent in February, following a 6.3 per cent increase in January.
A total of 16,606 dwellings were approved in February, according to data released by the Australian Bureau of Statistics (ABS).
ABS head of construction statistics Brock Hermans said: Approvals were varied across the building types. Private dwellings excluding houses fell 1.5 per cent, while private sector house approvals were up 1.0 per cent.
Master Builders Australia Chief Economist Shane Garrett said the new data from the ABS showed a 0.2 per cent gain for detached houses, but higher density approvals fell 0.9 per cent.
“We are starting to see a recovery in the market. Over the year to February 2025, new home building approvals are up 8.4 per cent.
“Higher density home building approvals did most of the heavy lifting, which is great news for renters and first home buyers.
“But there’s still a long way to go if we are going to meet the 1.2 million new homes target under the Housing Accord.
“Over the year to February, 177,400 new homes were approved, well below the 240,000 annual target.”
Master Builders Australia CEO Denita Wawn added: “We need to see more investment in housing supply and action on reducing supply barriers.
“We have long called for better co-ordination across departments when it comes to investment in building and construction projects.
“Master Builders supports the Coalition’s Investment Australia announcement today to reduce regulatory costs and red tape, with a specific working group focused on construction.
“Both major parties are starting to send the right signals as the election campaign unfolds, which reflect policies in our election platform.”
