‘A disappointing step back’: mixed results for building approvals quickly calling for action

After an increase in June, the approval figures of July 2025 tell a different story – which encourages industrial authorities to call for urgent action.

In July 2025, the total number of approvals of buildings fell by 8.2% to 15,769 according to the last seasonal adapted figures from the Australian Bureau of Statistics (ABS).

The fall comes after June, registered the highest level of approvals since August 2022.

The decline of July was largely powered by a decrease of 22.3% in approvals for private homes excluding houses and category that includes apartments, semi-detached houses and mansions.

Last month this specific category also saw the highest increase since December 2022, with 33.5%.

The results were mixed in the United States. New South Wales and South Australia fell by 24.6% and 1.3% respectively in total Aprovals, but Tasmania, West -Australia, Queensland and Victoria rose by 12.2%, 11.8%, 5.8% and 0.7%.

Detached approvals of the house rose 1.1% to 9288 and returned after a fall of 1.9% in June.

“New South Wales and West -Australia had the strongest increase in the approvals of the private sector, with both states with 3%,” said ABS head of the Daniel Rossi building statistics.

“Victoria won 1.3% and has risen for a fourth consecutive month. South -Australia was the only state to register a valley, fell by 6.1%,” he added.

A mixed bag for housing stock

Although the figures from June were the strongest in almost three years, industrial authorities say that Australia still has a long way to achieve its homes.

To achieve the goal of the National Housing Accord of 1.2 million new houses by 2029, the nation has to build 20,000 houses every month. Completions must be higher than that, because inevitably some projects will never get off the ground.

According to the Property Council of Australia, the figures from July were “a disappointing step back after two months of rising home approvals”.

Property Council Executive Policy and Advocacy Matthew Kandelaars said that although the reform of planning and zoning plans progress has been made, the momentum must be maintained.

Last week the federal government announced that the further updates of the National Construction Code would pause to reduce delays in housing.

Private homes excluding houses brought the decline with approvals of 23.3%. Photo: Getty

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“Progress is being made, but the food frip line is limited, as these figures show,” said Mr Kandelars.

“Apartment approvals can be fleeting, but it is still disappointing to see a significant decrease in the month.”

Despite the DIP of July, Mr Kandelaarars noted that approvals have improved for more than 12 months.

“The total approvals for home have risen by 6.6% compared to the same time last year, while the private homes with the exception of approvals of houses by 12.5% ​​rose,” he said.

The Housing Industry Association (HIA) welcomed the increase in detached house goods inspections, especially with the possible impact that the 5% deposit guarantee can cause.

Hia senior economist Maurice Tapang said that initiatives that focus on buyers of the first home can have a significant effect.

“About a third of all new houses are built by buyers from the first house, and in the long term, initiatives that lower the costs of the buyers of the first houses entering the market will lead to an increase in new home research,” said Mr Tapang.

He also pointed to the role of interest rates in supporting the question.

“With three interest rates that were delivered this year, more households are expected to return to the market to buy a house,” he said.

“The strong demand for homes in the established market is expected to continue filtering to the new home market, because building a new house will be relatively more attractive.”

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