Australia’s housing sector is facing renewed pressure after the latest data revealed a sharp drop in dwelling approvals for March. According to the Australian Bureau of Statistics, total approvals fell to 15,220 — a six-month low and well below the 20,000 homes per month needed to meet the federal target of 1.2 million new homes by 2029.
A Concerning Downward Trend
The decline was driven by a significant 27.4% fall in apartment approvals, which dropped to just 3,055. Single-family home approvals also dipped, falling by 4.5%. This slump raises serious concerns about the country’s ability to meet its long-term housing goals.
Matthew Kandelaars, Group Executive of Policy and Advocacy at the Property Council of Australia, described the figures as “another reminder of the tough road ahead to reach our housing goals.” He emphasized that approvals fell across all housing types, with the apartment sector seeing the most pronounced decline.
State-Level Struggles
Victoria experienced the sharpest fall, with apartment approvals plummeting to just 671 in March — down from 2,294 in February. While New South Wales saw a slight uptick, reaching 4,032 approvals for the month, it still fell short of the 6,250 monthly target set by the state’s National Housing Accord.
These numbers highlight the widening gap between housing needs and supply. While some progress has been made, it is becoming increasingly clear that policy reform and faster delivery will be necessary to close that gap.
Challenges Beyond Paperwork
Experts point to multiple factors contributing to the slowdown:
- Labour shortages
- High construction costs
- State-based taxes
- Lengthy planning and approval processes
Even when a project is approved, many hurdles remain before building can begin. The industry is calling for greater certainty in tax and planning policies, particularly for apartments, which often have longer timelines.
A Call for Unified Action
Kandelaars stressed the need for an “all-in” approach, saying the focus must now shift to the delivery phase. With the federal election behind us, industry leaders are urging governments to accelerate planning reforms and streamline the construction pipeline.
“We look forward to early industry engagement to get the detail of the government’s election commitments right and to maximise their housing benefits right across the country,” he added.
What’s Next?
If swift action isn’t taken, Australia risks falling even further behind its housing targets — a scenario that could worsen affordability issues and put additional pressure on families and the rental market.
