Despite the broader decline, there was a modest silver lining: approvals for private sector homes in Victoria rose by 1.4 per cent over the month-making it the only state to record an increase in this category.
Victorian Executive Director of the Property Council, Cath Evans, said the figures reinforce the severity of the housing crisis and the urgent need for a policy reset.
"Overall dwelling approvals for the 2024-25 financial year in Victoria totalled less than 57,000. This is an increase on the previous 12 months but illustrates the extent of the work still needed to boost the supply of new homes," Ms Evans said.
"A slight increase in private home approvals is welcome, but it barely scratches the surface of Victoria's housing shortfall."
"Victoria remains well short of the state government's annual target of 80,000 new homes. We won't get there without reducing dumb property taxes and bolder action to speed up planning and improve the performance of referral authorities."
Ms Evans warned that the consequences of inaction will be felt across the economy and the community.
"This is not just an industry problem-it's a community problem. Every delay drives up costs for buyers and renters and pushes the dream of home ownership further out of reach."
