Total dwelling approvals rose to 4,642 in July, up from 4,233 in June. However, the average monthly approvals figure over the past year remains around 4,700, highlighting that the latest increase has done little to shift the broader trend.
Property Council Victorian Executive Director Cath Evans said the figures paint a concerning picture.
"We know population growth is outpacing housing delivery. If we don't have enough homes being approved and built to meet the needs of Victorians, then Victorians are the ones missing out.
"Previous ABS data on dwelling completions showed we were well short of Victoria's target of 80,000 homes a year, and these approvals figures do little to inspire confidence that we are getting back on track.
"Industry sentiment in Victoria remains at a record low, reflecting the state's harsh tax settings and the barriers that are making it harder to get projects off the ground.
"Victoria needs policies that support housing delivery and investment, rather than adding further costs, red tape and uncertainty.
"In our 2026 election platform, Best to Invest: The Reform Agenda Victoria Needs Now, we highlighted Victoria's uncompetitive tax regime which sets us apart from our interstate neighbours.
"We continue to call for a reduction of the additional land tax on global institutional investors who support major projects in our state, additional relief from Off the Plan Stamp Duty for new supply of apartments and town homes, and the abolition of Windfall Gains Tax.
"Until meaningful change is made, Victoria will continue to struggle to attract the investment and deliver the housing it urgently needs."
