The latest data on building approvals has been described as “frustrating”.
A fall in approvals in October has prompted industry bodies to call for changes that they say could streamline the approvals process and boost housing supply.
Seasonally adjusted data from the Australian Bureau of Statistics (ABS) revealed total dwelling approvals fell 6.4% in October to 15,832 for the month.
October apartment approvals fell 39.2% to 3397 dwellings, after a record month in September. Picture: Getty
The decline was largely driven by a 13.1% drop in approvals for multi-dwelling constructions — including apartments, townhouses and semi-detached homes — to 6253 dwellings. This followed a record month in September 2025, when the category surged 26%.
Private sector house approvals also fell 2.1% to 9251 dwellings in October, after rising 3.2% in September.
Across Australia, the picture was mixed.
Victoria, New South Wales and Tasmania recorded significant total approval drops of 24.7%, 20.6% and 15% respectively, while Western Australia, South Australia and Queensland saw increases of 28.1%, 11.2% and 2.4%.
ABS head of construction statistics Daniel Rossi said detached house approvals fell in most states.
“Private sector house approvals fell in most states. Victoria had the largest fall, down 6.6%, after a 4.7% rise in September,” Mr Rossi said.
“The exception was Queensland, where private sector house approvals rose 2.7%.”
A volatile market
While the multi-unit category was the main driver of October’s decline, it was apartments that suffered the largest fall — dropping 39.2% to 3397 dwellings in original terms.
According to the ABS, this figure is 12.8% below the monthly average for the past year.
Property Council of Australia group executive policy and advocacy Matthew Kandelaars said apartment approvals are naturally more volatile, but the sudden reversal after September’s surge was “frustrating”.
“We know we can lift our run rate. In October 2015, we approved 9212 apartments — that should be the benchmark we set for ourselves,” Mr Kandelaars said.
“While ambitious, this is an achievable target, and it should be our goal heading into the new year.”
Total dwelling approvals fell 6.4% to 15,832 for October. Picture: Getty
Mr Kandelaars said recent policy changes, such as new environmental laws, have shown how reforms can accelerate approvals.
“This highlights the results that can come from a focused approach to environmental and planning approvals and stands as a solid example of how to make our processes more efficient,” he said.
“But today’s data shows complex and rigid planning systems continue to hold us back. We need wholesale reform and an unfailing focus on structural improvements to approvals processes.”
Master Builders Australia CEO Denita Wawn said the numbers indicated a “clear gap between policy ambition and reality”.
“Builders are struggling to make the numbers work. Construction costs have jumped more than 40 per cent since 2019 and rising finance and insurance costs are pushing too many projects off the table,” Ms Wawn said.
“Without urgent action to ease pressures and restore confidence, more projects will stall before they even start.”
Despite October’s decline, Housing Industry Association (HIA) analysis shows that the volume of new approvals in the 12 months to October 2025 reached 192,100 — up 12.6% compared to the previous year.
“Interest rate cuts have provided the confidence boost for home buying activity. Households are increasingly turning to new home building as an alternative,” HIA senior economist Maurice Tapang said.
“This comes as established home prices continue to rise, as demand outpaces the supply of homes available for purchase.”
HIA also forecasts a lift in apartment construction, with commencements expected to grow 6.5% in 2026 — potentially reaching 100,000 new builds per year by the end of the decade.
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