Based on Australian Bureau of Statistics figures released today, total dwelling approvals fell 6.1 per cent in August to 16,953 dwellings, although approvals do remain higher than a year ago.
Property Council Group Executive Policy and Advocacy Matthew Kandelaars said the figures reflect a housing market that remains volatile.
"While annual growth in approvals is encouraging, today's results are a reminder that Australia's housing pipeline remains fragile as it responds to turbulent tax and investment settings," Mr Kandelaars said.
"To reach sustained growth in housing supply over many years and improve affordability we need to prioritise a stable investment environment."
Mr Kandelaars said the Property Council's upcoming submission to the Productivity Commission on housing supply regulation gives governments the blueprint to achieve real change.
"Housing supply is not a tap that can be turned on and off. Delivering new homes requires long-term confidence, stable policy settings and projects that are commercially viable.
"Governments need to back in the private market, which delivers 97% of all new housing construction. We must make feasibility a core test of any regulatory reform and ensure we have full accountability from approval to construction commencement.
The August results were mixed across the country. Total dwelling approvals fell in New South Wales (-17.3 per cent), Queensland (-22.5 per cent) and Tasmania (-1.5 per cent), while Victoria (+8.9 per cent), South Australia (+24.0 per cent) and Western Australia (+3.2 per cent) recorded gains.
The data also showed the value of residential building approvals slipped 0.6 per cent to $11.3 billion in August, while total building approvals fell 21.3 per cent, driven by a sharp decline in non-residential approvals.
