Property Council ACT & Capital Region Executive Director Ashlee Berry said new ABS data shows the Capital Region has recorded 481 dwelling approvals so far this financial year, ahead of the Central Coast (419), Mid North Coast (344) and Southern Highlands and Shoalhaven (465).
"The Capital Region is doing the heavy lifting on new homes," Ms Berry said.
"Local councils are pushing hard to get projects through the system, and the approvals numbers show that effort is paying off. This is a strong result in a very tough environment."
Ms Berry said approvals growth was positive, but warned the workload was stretching councils that were already dealing with planning reforms, infrastructure demands and workforce gaps.
"Planning teams in regional councils are running hot," she said.
"They're focused on delivering growth strategies, assessing increasingly complex applications and managing community expectations, all while competing with metropolitan NSW and the private sector for staff.
"If we want these approvals to keep coming, we must resource the people who make them happen."
Ms Berry said feasibility remained a key constraint on turning approvals into homes on the ground.
"High construction costs, tight debt markets and rising infrastructure charges are still knocking too many projects out of contention," Ms Berry said.
"The pipeline is there. What we need is a clear path through planning, fair and predictable infrastructure contributions, and support for enabling works so projects can stack up and proceed.
"Regional NSW has a big role to play in meeting housing targets. The Capital Region is showing what's possible when councils, industry and government work in the same direction," she said.
"The next step is to lock in that momentum. That means backing high-performing councils with the funding, people and infrastructure they need, so today's approvals become tomorrow's homes."
The Property Council said it would continue working with councils and the NSW Government on practical measures to support housing delivery across the Capital Region, including planning system improvements and more sustainable approaches to local infrastructure funding.
