According to the latest Australian Bureau of Statistics data, total home building approvals rose by 12 per cent in September, representing the strongest monthly result since June.
The increase was driven by gains across both detached houses and higher-density homes.
Master Builders Australia Chief Economist Shane Garrett said the data showed positive movement across different housing types.
“Detached house approvals increased by 4.4 per cent, the best monthly result in a year, while higher-density approvals surged 23.7 per cent, their strongest since June,” Mr Garrett said.
The annual figures also paint an encouraging picture for the construction industry, with approvals reaching their highest level in nearly three years.
“Over the year to September, 191,695 new homes were approved across Australia, the highest annual total in almost three years and 13.7 per cent higher than the previous 12 months,” Mr Garrett said.
Despite this improvement, the industry remains significantly below the targets set by the National Housing Accord.
Current approval rates leave Australia approximately 48,000 homes short each year of what’s required under the government’s housing plan.
The data also revealed that approvals for major home renovations increased by 1.2 per cent, while non-residential building approvals experienced a decline of 19.3 per cent during the month.
Master Builders Australia CEO Denita Wawn acknowledged the positive trend but said there were ongoing challenges facing the construction sector, including rising costs and regulatory obstacles.
“This is welcome news for builders and tradies on the ground, but we can’t ignore the broader context,” Ms Wawn said.
Recent inflation and producer price data indicate that building costs and rents continue to rise, maintaining pressure on housing affordability for both renters and prospective homebuyers.
Ms Wawn called for government action to streamline processes and support the construction industry.
“Governments must fast-track reforms that cut red tape, improve planning and approvals, lift productivity, boost the construction workforce, and get the economy moving again,” she said.
