Property Council NSW Executive Director Katie Stevenson said the latest seasonally adjusted data to 30 June showed 49,519 dwellings were approved last financial year, compared to 42,695 in the previous financial year.
"After two years of reform, it's very encouraging to see positive movement being reflected in the housing pipeline data," Ms Stevenson said.
"Today's numbers build on the encouraging signs we saw in the ABS data for housing starts in the first quarter of this year, up 24 per cent on the previous quarter to 13,573 new dwellings.
"The figures speak to growing industry confidence and to the impact of planning reforms to date - but it's important not to lose sight of the fact we're still well short of the numbers required to meet NSW's National Housing Accord target of 75,000 homes a year," Ms Stevenson said.
Ms Stevenson said while the approvals data was encouraging, reports today of new construction insolvency data for the last financial year showed a building sector still under pressure.
"We're still operating in a very fragile environment. Projects are under pressure, costs are climbing, and confidence across the construction sector is being tested.
"The construction insolvency data show what many in the sector already know - we are losing builders at record rates, with 1,567 going into liquidation in the last financial year alone.
"These numbers are deeply worrying. You can't build more homes if builders are going bust," Ms Stevenson said.
"Without urgent action to address both feasibility and productivity - taxes and levies, planning delays and construction costs - there's a real risk the green shoots of recovery we're seeing could be short lived – we need to double down on delivery in the next 12 months," Ms Stevenson said.
ABS for June data shows 5,616 total dwelling approvals, up from 4,271 in May but - still below the 6,250 needed each month to be on track for NSW's Accord target of 75,000 homes a year. Over the full 12 months since 1 July 2024, 49,519 new homes were approved across the state.
The Property Council's Productivity in NSW event on Tuesday 5 August comes at a critical moment as governments turn their attention to the links between housing and productivity. The event will bring the focus to NSW, highlighting the practical reforms needed to unlock delivery, attract investment and boost the state's economic performance.
