The latest ABS Building Approvals data shows a 40.1 per cent monthly increase in apartment approvals in May, with 2,274 apartments approved - up from 672 the month prior. However, total dwelling approvals for the month reached just 4,167 - still short of the 6,250 per month needed to hit NSW's National Housing Accord target of 75,000 homes per year.
Property Council NSW Executive Director Katie Stevenson said the apartment boost was encouraging and could point to planning reforms introduced in the last 18 months now beginning to kick in.
"Any boost in apartment approvals is a welcome sign - but it's also important to acknowledge we're still a long way off where we need to be," Ms Stevenson said.
"Over the past 12 months, NSW has approved just 46,569 new homes. That's not even two-thirds of what's needed. We need to be approving 75,000 homes a year just to meet our target."
Ms Stevenson said recent planning reforms and a range of positive new measures announced in last week's NSW Budget laid welcome groundwork to accelerate housing supply, but sustained delivery was now critical.
"NSW has taken big steps in the right direction - from new planning pathways and state-led rezonings to Budget measures like the new finance guarantee and build-to-rent tax concessions," she said.
"But these reforms must now translate into approvals, into investment, and ultimately into homes. Last weeks Budget papers revealed that the lead time between approvals and completions for housing is currently two years, while for apartments it averages around three years.
The first anniversary of the National Housing Accord passed yesterday, with federal and state governments committed to a joint target of 1.2 million new homes over five years.
Ms Stevenson said the Accord had put housing firmly on the agenda for all levels of government, but more was needed to turn ambition into delivery.
"The next 12 months needs to focus on removing the roadblocks to getting homes built, putting the spotlight on productivity in property and construction, along with continued momentum on planning reform, certainty for investors, and better coordination across infrastructure, finance and delivery," she said.
