Dwelling approvals data continues to paint a grim picture

The Property Council of Australia said the release of the Australian Bureau of Statistics data for building approvals continues to paint a grim picture on the nation’s ability to meet its ambitious housing targets.

Property Council Group Executive Policy and Advocacy Matthew Kandelaars said while dwelling approvals rose in March, they are rising from a low base and remain lower than where they were 12 months ago.

“The rise in approvals, while welcome, are a drop in the ocean as we seek to address our national housing supply deficit,” Mr Kandelaars said.

“While Victoria and Western Australia saw a slight rise in dwelling approvals, every other state saw dwelling approvals fall.

“The total number of dwellings approved for both standalone houses and apartments are still at historically low levels.

“While approvals for townhouses and apartments rose in March, it comes off a 12 year low in February, after falling 24.7 per cent.

“The supply of new homes is constrained by a dire shortage of labour, alongside complex planning regulations and broken tax systems that are deterring investment, particularly foreign investment.

“As the government works towards a second surplus budget, it should invest in housing and double the $3 billion performance-based New Home Bonus and the $500 million Housing Support Program to incentivise the states and territories to build the homes we need.

“The government also needs to adopt a pro-construction adjustment in a smaller migration intake to ensure we have the skilled construction workers we need to build the homes we desperately require,” he said.

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