{"id":187263,"date":"2025-01-30T16:30:51","date_gmt":"2025-01-30T05:30:51","guid":{"rendered":"https:\/\/propertyupdate.com.au\/?p=187263"},"modified":"2025-01-31T11:45:56","modified_gmt":"2025-01-31T00:45:56","slug":"new-dwelling-approvals-are-still-falling-short","status":"publish","type":"post","link":"https:\/\/propertyupdate.com.au\/new-dwelling-approvals-are-still-falling-short\/","title":{"rendered":"New dwelling approvals are still falling short"},"content":{"rendered":"

New dwelling approvals \u2013 whilst up 6% on last year \u2013 remain lacklustre.<\/span><\/p>\n

Some 168,000 new dwellings were approved over the past twelve months, most of which (110,000 or 65% were detached houses) and 58,000 were attached dwellings.<\/span><\/p>\n

Nearly half (47%) of the new attached dwelling approvals were townhouses, followed by high-rise apartments, mid-rise stock and the n walk-ups.<\/span><\/p>\n

There were just 27,500 new high-rise apartments approved across Australia for the year ending October 2024.<\/span><\/p>\n

\"Annual<\/p>\n

One of the main reasons why - and despite us being held every second that apartments especially those in new tall towers are the solution to new housing supply and ironically housing affordability \u2013 that new apartment supply is in the doldrums is because they cost a hell of a lot to build.<\/span><\/p>\n

They cost much more than detached houses and townhouses.<\/span><\/p>\n

And whilst all building costs have risen over the past five years, new apartment builds \u2013 regardless of type \u2013 have seen a rapid escalation in construction costs.<\/span><\/p>\n

\"New<\/p>\n

There are many reasons why, including union-related thuggery, a shortage of skilled labour and limited interest in tier one and two builders. <\/span><\/p>\n

Also, there aren\u2019t enough of these builders these days to go around.<\/span><\/p>\n

Moreover, many new apartment projects - sell-off plans - don\u2019t actually get built. <\/span><\/p>\n

This obviously isn\u2019t good regarding new housing supply plus it pisses off buyers no end and further hinters at future off-plan buying.* It is hard enough selling off-plan as it is without making it even harder.<\/span><\/p>\n

Yet in theory, we should see more new housing starts in 2025.<\/span><\/p>\n

This assumes that interest rates fall, as there is a strong relationship \u2013 no surprise here \u2013 between a change in the cost of money and new housing activity.<\/span><\/p>\n

But most of this new housing supply will be \u2018stick\u2019 construction. <\/span><\/p>\n

Cheaper builds with short time frames. <\/span><\/p>\n

Expect more prefabricated stock.\u00a0<\/span><\/p>\n

My last chart in this post shows that we need more digs, as the new housing market \u2013 again no surprise here \u2013 is very undersupplied.<\/span><\/p>\n

\"Dwelling<\/p>\n

End note<\/h2>\n

Looking forward we need to build twice as many homes each year than we did last year. <\/span><\/p>\n

Not 168,000 per annum but something like 300,000 per annum between now and say 2030. <\/span><\/p>\n

This applies even if we cut migration. <\/span><\/p>\n

We have a backlog that would make a dead man groan.<\/span><\/p>\n

<\/div>\r\n
<\/div>\n","protected":false},"excerpt":{"rendered":"

New dwelling approvals \u2013 whilst up 6% on last year \u2013 remain lacklustre. Some 168,000 new dwellings were approved over the past twelve months, most of which (110,000 or 65% were detached houses) and 58,000 were attached dwellings. Nearly half (47%) of the new attached dwelling approvals were townhouses, followed by high-rise apartments, mid-rise stock…<\/p>\n","protected":false},"author":8,"featured_media":154478,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[54,4,1186],"tags":[],"class_list":["post-187263","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-property-updates","category-property-development","category-weekly_latest"],"acf":[],"yoast_head":"\nNew dwelling approvals are still falling short<\/title>\n<meta name=\"description\" content=\"New dwelling approvals \u2013 whilst up 6% on last year \u2013 remain lacklustre. 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