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ABS: Housing approvals up and NSW is leading the way!
CEO of the Urban Taskforce, Tom Forrest said that today’s ABS data on housing approvals for the month of January 2025 shows a substantial improvement and this reflects the implementation of planning reforms across the nation.
The good news for the states is many of these reforms are yet to flow through the system, but we are already seeing a marked upturn in the number of approvals, led by the performance in NSW.
According to the ABS release today, “Approvals for total dwellings were mixed across the states: New South Wales (39.6%), South Australia (17.0%), and Western Australia (5.6%) rose. Meanwhile, falls were recorded in Queensland (-25.7%), Tasmania (-6.3%), and Victoria (-1.5%).”
The national result is led by the results in NSW and after a long period of being the laggard state, NSW is finding its mojo again. This is coming through in the national results.
The act of setting clear targets establishes a benchmark for expectations of assessors and decision makers. There is clear evidence that housing supply is a key priority of both the community and political leaders, and this appears to be having an impact.
With a federal election due imminently, poll after poll shows housing affordability and rents a key concern in voters’ minds. With planning systems showing signs that they are improving their game, the key constraint on turning these approvals into completed dwellings will be the funding and delivery of infrastructure. This is where the Commonwealth has a big role to play.
While the national data shows improvement, we are still a long way from the number of approvals needed to achieve the Housing Accord target of 240,000 homes per year or 1.2 million homes in the five years to June 30, 2029.
The NSW planning system is showing clear signs that it is responding to the leadership of Premier Minns and Planning Minister Scully, and with the HDA now in place, it is reasonable to expect further improvements in the number of approvals later in the year.
Both the Minns Government and the NSW Opposition have committed to a bi-partisan approach to reforming the moribund Planning Act in NSW to further speed up housing approvals.
To date, we have seen a patchy response from the Albanese Government with no real indication that they appreciate the size of the housing supply crisis or the key role they must play in solving the crisis.
Urban Taskforce has called on the Federal Government to step up to the plate and back the Accord with a 3-year, $24 billion housing infrastructure fund to encourage and reward States doing the right thing in term of housing supply with infrastructure funding.
There has been significant investment in western Sydney, but there is great need for further infrastructure support.
The Albanese Government must respond accordingly and send a message to all voters that it is hearing the cost-of-living pain caused by the lack of housing and has a funded plan to work with the States to deliver the housing that is missing in Australia right now.
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The comments and analysis above can be attributed to Tom Forrest, CEO, Urban Taskforce.
The Urban Taskforce Australia is a property development industry group, representing Australia’s most prominent property developers and equity financiers.