Victoria is accelerating planning approvals for thousands of new homes, but fresh figures show the number of homes actually completed has barely moved over the past year.
The latest Australian Bureau of Statistics data cited by the Property Council of Australia shows 56,303 homes were completed in Victoria in the 12 months to June 2026, compared with 56,296 in the previous 12 months.
That represents an increase of just seven homes.
The figures come as the Victorian Government says more than 15,000 homes have now been approved through its Development Facilitation Program (DFP), including 1,775 in August alone.
There are also signs of improvement further up the construction pipeline.
According to the Property Council, 16,239 dwellings commenced construction in the June quarter, the highest quarterly figure since March 2023.
That brought total commencements for the 12 months to June to 57,551, up from 55,958 in the previous year.
Property Council Victorian Executive Director Cath Evans said the completion figures showed the state remained well short of its housing ambitions.
“We continue to fall well short of the Victorian Government’s own target of 80,000 homes a year, or 800,000 homes over the next decade, as set out in the 2023 Housing Statement,” Ms Evans said.
“Victoria’s population is growing, but housing supply is not keeping pace. Without serious reform, the industry cannot deliver the homes Victorians urgently need.
“An increase of seven more homes in 12 months is just not good enough.”
Ms Evans said the Property Council wanted further changes to the settings affecting development.
“That requires action on the barriers that are making projects increasingly difficult to get off the ground — particularly Victoria’s tax settings and planning system,” she said.
The Property Council’s 2026 election platform calls for measures including reducing the tax burden on institutional investors, incentivising new apartment and townhouse construction and abolishing the Windfall Gains Tax.
“Victoria cannot afford to keep falling behind. If we want to build homes, we need to make it easier – not harder – to invest, develop and build in this state,” Ms Evans said.
The Victorian Government, meanwhile, says its planning reforms are accelerating the approval process.
According to the government, projects using the DFP have an average approval time of four months, which it says is 10 months faster than the average council housing approval.
The government says 3,705 homes were approved through the program in its first 12 months, followed by 9,000 in the next 12 months, with a further 6,000 approved so far this year.
Projects using the pathway must provide 10 per cent affordable housing, either through new homes or a cash contribution to the Social Housing Growth Fund.
The government says almost $63 million has been directed to the fund through the program.
Among the recently approved projects is a development comprising 478 homes on Victoria Parade in Collingwood, which is also planned to include a public plaza, neighbourhood garden and ground-floor retail.
Victorian Planning Minister Sonya Kilkenny said the government was speeding up housing approvals.
“Labor is fast-tracking thousands of homes right across Victoria,” Ms Kilkenny said.
Housing, Building and Precincts Minister Nick Staikos said the program was also supporting affordable and social housing.
“We’re getting more affordable and socials homes fast-tracked through this program, providing a home for those who need it most,” Mr Staikos said.
The figures highlight the gap between Victoria’s growing pipeline of approved and commenced projects and the number of additional homes ultimately reaching completion.
While commencements have improved and the government says its fast-track program is accelerating approvals, the latest completion figures show the challenge remains converting that pipeline into finished housing.