The Property Council of Australia says new ABS Building Approvals data reflects the scale of the challenge NSW is facing to build the pipeline needed for the remainder of the National Housing Accord.
The data shows 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 the Property Council says are now needed to build the pipeline required to meet the State’s Accord target.
Property Council NSW Executive Director Katie Stevenson said the July result reinforces the need to maintain 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.”
NSW has committed to deliver 377,000 new homes between July 2024 and June 2029 under the National Housing Accord.
Ms Stevenson said approvals remain an important early indicator of future housing supply and should be considered 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 progress through planning reforms, the Development Coordination Authority and a growing focus on development feasibility.
The Development Coordination Authority commenced on 1 July 2026 as a central point for NSW Government input on planning matters, bringing together advice previously handled across multiple government agencies.
“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.
She said feasibility remains a 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.”