Apartment-killer taxes & planning systems stall housing supply

The Property Council of Australia said today’s release of the Australian Bureau of Statistics (ABS) data for building approvals continues to show a volatile market for apartment approvals, which is dragging down housing approval numbers.

The number of dwellings approved fell 6.1 per cent in August to 13,991, after an 11 per cent rise in July, according to data released today by the ABS.

The decline was fuelled by a 16.5 per cent fall in approvals for private dwellings excluding houses (such as townhouses and apartments), to be 6.1 per cent lower than one year ago.

This was mainly driven by a decline in high density apartment approvals. There were 1,214 apartments approved in nine or more storey blocks in August, down from 2,504 in July.

Property Council group executive policy and advocacy Matthew Kandelaars said it is disappointing to see the number of approvals go backwards after growth in July.

“We need to increase the number of homes approved and ensure a strong pipeline of apartment supply, to drive towards our housing targets at scale,” Matthew said.

“But the reality is that it has never been more difficult and costly to get apartments out of the ground.

“Apartment-killer taxes and planning systems continue to stall housing supply at a time when we can least afford it.

“Over the past year, we approved nearly 9,000 fewer apartments and townhouses across the country than the in preceding 12-month period.

“We need that number to increase month on month to build the homes Australians need.

"One of the quickest solutions is for Parliament to pass compromise build-to-rent legislation backed by the Property Council, Community Housing Industry Association and National Shelter, that can unlock 105,000 new apartments by 2034, with 10 per cent affordable."

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