The data shows just 4,586 homes were approved in NSW in July, down 8.1 per cent from 4,990 approvals in June. Over the 12 months to July, 52,776 homes were approved – well short of the more than 80,000 homes a year now needed to meet the State’s Accord target.
Property Council NSW Executive Director Katie Stevenson said the July result reinforces the need to keep up the momentum on planning reform, feasibility, and project delivery.
“NSW needs sustained housing growth, not stop-start performance,” Ms Stevenson said.
“Month-to-month movements are inevitable, but NSW still needs a larger and more reliable approvals pipeline if we are to have a chance of getting close to our Housing Accord target of 377,000 over five years to 2029.”
Ms Stevenson said approvals remain the earliest indicator of future housing supply and should be viewed alongside broader measures of housing activity.
“Approvals are the starting point for every home that eventually gets built,” she said.
“If we don’t maintain a strong flow of approvals, it becomes much harder to lift commencements and completions in the years ahead.”
Ms Stevenson said the NSW Government had made important progress through planning reforms, the Development Coordination Authority, and a growing focus on development feasibility.
“The Government has recognised that housing capacity is not the same as housing that can be delivered. The next challenge is making sure approved projects can move through to construction as quickly as possible.”
Ms Stevenson said feasibility remains the key issue facing housing delivery across NSW.
“Projects only become homes when the economics stack up. Construction costs, financing conditions, taxes, charges, and infrastructure costs all influence whether approved projects proceed.
“Getting more homes approved matters, but getting more homes built matters even more.”
