2025 Kicks Off with Growth in Dwelling Approvals Across Australia

With reports from the Australian Bureau of Statistics (ABS) dwelling approval figures for the recent period are shown to have significantly improved. What is now Australia’s primary concern is the disproportionate cost of living and dwindling availability of houses. Offers for low-maintenance residences are on the rise which is good news for both investors and homebuyers. 

Opportunity Comes With Change 

These dwellings have seen a massive boost in approval ratings which have reached 16,579 dwellings marking a 6.3% growth in January 2025 alone. Emerging construction projects for apartments and townhouses combined with increased demand showcase builders are responsive to the boost in consumer confidence. It is expected that the change in government and the emerging rate of unemployment will bring in even more shifts. 

- Apart from single dwelling units, house approvals saw an increase of 1.1% reaching 9042. This is an outstanding 8.9% increase as compared to January 2024. 

- Heavily driven by new installed capacity in other regions of New South Wales, boost in class M multi-family apartments and condominiums also saw an increase of 12.7% making it their highest since December 2022

Source: Australian Bureau of Statistics (ABS)

This is a line chart that illustrates the changes in the number of units approved by each building type (after seasonally accounting for repetitive trends) throughout the past 14 months: 

• The Total Dwellings (light blue) have a completely uniform pattern, aside from minor variations.

• Private Sector Houses (blue) show minor deviations but remain steady.

• Private Sector Dwellings (Excluding Houses) (orange) show even more apparent month-to-month fluctuations, particularly at the start and end of the year.

The outcomes differed state by state:

- Queensland: + 4.6%

- Australia’s Western region: +3.3%

- South Australia: +2.9%

- Victoria: -1.2%

- New South Wales: -0.8% (albeit with strong supporting apartment approval figures) 

The value of approved residential buildings became unprecedented at $9.04 billion, demonstrating a strong commitment towards construction, refurbishments, building and tender in Australia. This signifies Australia’s growing investment endeavours.

Why This Matters for Buyers and Investors 

No matter how scarce the supply, the sharp increase in property price, or even growing competition, these numbers indicate a one-and-all opportunity for dealing with diminishing housing space. The higher number of homes simply means that the market is stabilizing.

This signals excellent developments for homeowners because it would lead to less coercion to secure a property. It will make competition less even as the new stock becomes available.

For other people willing to invest in other opportunities, this caused a shift in the growth areas where business corridors and urban regions that are dense in apartment complexes are anticipated to yield better results. This is due to the persistent demographic expansion and heightened demand for rental apartments.---

Strategic Moves for 2025

To leverage these opportunities, think about the following:

- Homebuyers: Get pre-approvals now and look for flexible loan products so you can move quickly when new properties come online. 

- Investors: Look at leveraging equity from existing properties to acquire new ones located in parts of the country with population growth and infrastructure investment. 

- Homeowners: With so many options to refinance competitively, it may be prudent to get a mortgage restructure now and secure your future.

The Outlook 

The most recent data provides a glimpse of hope for Australia’s property market. The constraining factors of high interest rates and changing lender policies remain, but an increase in dwelling approvals provides optimism toward improved supplies of housing and balanced growth in 2025. 

OM Financials stands ready to service your tailored financial strategies and expert insights whether you are a first-time homebuyer or an investor looking to expand your portfolio and review your existing mortgage. It is time to plan and strategically anchor yourself in a recovering market. Call 478 876 967 or book an appointment  to secure your consultation .