Gap between building approvals and completions threatens national housing targets, expert warns

Australia’s housing pipeline is under growing pressure with changes in investor behaviour and tightening project-viability thresholds set to delay or derail new housing at the exact moment the nation is struggling to meet its Housing Accord targets. Access Wealth managing director and founder Dory Senior said the new-property market is becoming more nuanced, and that the gap between approvals and actual delivery is widening despite relatively positive headline numbers. He said the risks emerging in the pre-sales and construction-finance environment are not yet fully appreciated outside the industry. “Building approvals are obviously important, and I’d much rather see them rising than falling,” Mr Senior said. “But an approval isn’t a completed home. The real issue is how many approved projects are commercially viable, obtain finance, achieve the required pre-sales, commence construction and ultimately become homes people can actually live in.” Access Wealth managing director & founder Dory Senior The National Housing Supply and Affordability Council reports quarterly approvals are now 26 per cent higher and commencements 15 per cent higher than immediately before the Housing Ac...