ACT housing approvals hit record low despite government targets

New home approvals in the ACT have fallen to historic lows, as the territory’s newly appointed ministry faces pressure to boost housing supply.

The Australian Bureau of Statistics revealed detached housing approvals dropped to 793 for the year to September 2024, while construction starts remained weak at 790 for the year to June.

Overall housing starts increased 12.6 per cent but remained 10.1 per cent below the decade average.

Greg Weller, HIA Executive Director ACT & Southern NSW, said the appointment of new ministers could help address housing challenges.

“The creation of a Minister for Homes and New Suburbs under Minister Berry appears to give greater scope for the portfolio to address our need for new housing,” he said.

The industry body welcomed Minister Steel’s expanded role overseeing planning, sustainable development, heritage, transport and treasury portfolios.

Weller said taxation remained a significant barrier to housing delivery in the territory.

“With taxation being a great impediment to housing delivery, we hope that the appointment of Minister Steel to the role of Treasurer can also help pave the way for these discussions,” he said.

The ACT government has committed to delivering 30,000 new dwellings by 2030.

The HIA stressed that significant policy changes would be required to achieve this target amid current market conditions.

Portfolio consolidation under the new ministry structure has been viewed positively by industry stakeholders as a step toward better alignment of housing-related responsibilities.