When it comes to Perth’s housing supply, prices, and the tactics that landlords and real estate brokers should use, the time between approvals (the planning/permit stage) and starts/commencements (the actual construction phase) is crucial.Short-term scarcity, pricing pressure, and investment risk are caused by delays or divergence between approvals and starts and completions, which indicate what may be coming and what will actually arrive.

According to recent national ABS data, approvals are still erratic month-to-month, but commencements have grown significantly in 2024–2025.Western Australia’s building pipeline has accelerated, but approvals are still at historical lows when compared to population growth. For the buyers, sellers, and investors of Bargoti Real Estate in Perth, these factors present both opportunities and difficulties.

Why “starts vs approvals” matters

• For council/state agency permits, as well as internal developer approvals. They stand for expectation and consent. Approvals indicate that developers believe a project is feasible (land is obtained, drawings are approved, and funding is sought).
• When building (earthworks, slab, piling) truly starts on a site. Real-world activities are reflected in the tasks, including labour on the job site, the use of materials, and the actual construction of future supplies. The ultimate release valve for limited markets is the completion of homes or apartments that are for sale or rent.

There is uncertainty due to the delays and leakiness between approvals, commencement, and completion. On the other hand, increased starts (and completions) indicate that supply relief is imminent.

At the same time, a spike in approvals may not immediately alleviate rental or sale-market constraints if starts lag. Pricing, marketing, and acquisition tactics are informed by agents’ and property managers’ knowledge of the pipeline’s position at each stage.

Big-picture Australia & Western Australia context

• Building approvals (permits granted) and building activity/commencements (starts and work done) are two highly followed ABS series that provide complementary storylines.  
• Approvals have been erratic throughout; for example, the ABS recorded a decrease in the total number of dwellings permitted in July 2025 (seasonally adjusted) following months of increased activity; approvals for apartments and private homes have also diverged.
• The overall number of dwelling units started increased significantly in the March 2025 release, while ABS construction activity statistics also indicated an increase in dwelling commencements in early/mid-2025.  
• This implies that work on previously permitted sites has commenced, despite approvals fluctuating from month to month.Particularly in Western Australia, construction activity has significantly increased.
• According to WA government reports and releases, home construction in 2024 reached its most significant level in over seven years, with both completions and commencements increasing significantly (one published number showed completions growing by approximately 18.2% in 2024 and commencements up almost 46% compared to 2023).
• Although that suggests a high level of on-site activity in WA generally, it does not imply that approvals have completely returned to their pre-crisis levels.  

Key takeaway: Although Perth and Western Australia are building more homes than in previous years, approvals have fluctuated and in some months have remained below the sustained run-rate required to satisfy national housing targets, especially in specific sectors (apartments/medium density).

The anatomy of the approvals → starts pipeline (and where it leaks)

To comprehend the pipeline, it is necessary to examine the factors that may disrupt the process from approval to construction:

• Finance & pre-sales conditions
• Labour and skills shortages
• Materials and cost escalation
• Site conditions & unforeseen issues
• Regulatory & planning hold-ups post-approval
• Market signal mismatch

1. Developers often seek pre-sales, loans, and equity, particularly for apartment projects. A tightening of financial conditions may cause approved projects to stall. Approvals might not result in beginnings during times when financing rates are higher or investors are more cautious.

2. Trades and skilled labour constraints increase project delivery time and cost. Scheduled starts may be postponed if labour is unavailable.

3. An approved design may become unfeasible because of rising input costs (steel, lumber, and energy); developers may rethink, scale back, or halt construction.

Even after approvals, groundworks may be delayed by contaminated soil, ground conditions, or heritage/water limits.

4. Site mobilisation may be slowed by infrastructure agreements (such as headworks charges) or developer contributions.

5. Approvals are a snapshot in time; the developer may delay if customer opinion changes between approval and launch.

6. Informal and published information suggests that commencement rates in Perth have improved (i.e., builders are returning to the site). However, there is still some resistance to medium-density development approvals, a sector that is essential for urban infill and rental supply.

Recent Perth-specific data points that matter (what’s new and essential)

The following are a few data anchor points that are useful to mention in reports or when speaking with clients:

• ABS — Building Approvals (national, July 2025)
• ABS — Building Activity / Commencements (March 2025)
• WA Government (April 2025 media statement)
• REIWA (market commentary July 2025)
• CoreLogic & other industry commentary

1. Seasonally adjusted, the number of permitted dwellings decreased to about 15,769, representing a monthly decline of 8.2%. Houses in the private sector increased little, but permissions for medium-to-high density housing declined sharply. This demonstrates how sensitive flat approvals are and how this affects the future supply of multi-units.

2. In the relevant announcement, the total number of building commencements increased by around 11.7% in seasonally adjusted terms, indicating that more residences were being built even as approvals were being distributed. This illustrates how starts can rise relatively quickly, provided contracts and money are in line.

3. There were 19,360 commencements in 2024, a 46% increase over 2023; completions increased 18.2%, and 20,639 homes were completed in WA in 2024, the most in almost seven years. In comparison to recent years, this indicates a noticeably better building performance in WA.

4. According to projections and analysis, Perth’s price growth for units is expected to surpass that of houses in 2025. This suggests that the dynamics of supply and demand vary depending on the kind of housing and that medium-density shortages (or changes in demand) are affecting results.

5. Perth’s values and market activity are still strong compared to many other capitals, according to CoreLogic weekly reports and regular market indicator summaries. This is due to the city’s restricted stock supply and favourable local economic conditions.

Supply composition matters: houses vs units vs infill

The housing market in Perth is not uniform:

• Greenfield detached housing
• Infill & medium-density (townhouses, low-rise apartments)
• High-density apartment towers

1. Approvals for new estates on the outskirts of cities are influenced by developer economics, infrastructural finance, and land release. Once servicing is established, a large number of homes can be supplied really fast when greenfield approvals and starts ramp up.

2. Approvals are more complicated and frequently involve pre-sales, infrastructure cooperation, and additional planning overlays. In inner suburbs, these developments have a disproportionate impact on the rental supply and closeness to employment markets, and thus are more susceptible to finance and demand shocks.

3. Significant fluctuations in these approvals can result in headline volatility (many homes are approved for a single central tower), but only if pre-sales and finance are in sync can they deliver in bulk.

4. According to recent data, Perth has experienced a significant number of starts and completions overall. However, medium-density approvals must continue to be poor or volatile, as this limits the supply of inner-city rentals and pushes up inner-suburb and rental values.

How the approvals–starts gap affects prices and rents in Perth

• Short-run price/rent pressure
• Expectation effects
• Type-specific impacts
• Investor behaviour

1. The immediate supply for both buyers and tenants tightens if approvals decline (or are concentrated in subsequent years) while starts and completions are still few or sluggish to arrive; as a result, prices and rents increase. Prices have been under constant pressure to rise in 2024–2025 due to Perth’s low listing stocks and robust buyer activity.

2. The market sets prices based on anticipated future supply (approved pipeline). If buyers feel relief is on the way, high approval volumes can moderate sudden price hikes. However, if approvals don’t begin, confidence may revert to shortage.

3. Inner-city homeowners and tenants experience more severe supply shortages if approvals are biased towards homes while inner-city units are not authorised or initiated. The observation made by REIWA that units may outperform homes in terms of price rise is indicative of shifting supply and demand balances.

4. Investor competition for rental properties is heightened by the perceived short-term scarcity, which drives up prices and lowers yields. On the other hand, when investors expect more supply to enter the market, the assurance of a robust pipeline (starts → completions) may reduce speculative demand.

Causes of the current approvals vs starts profile in Perth (synthesis)

Combining the data and industry analysis, the following are the main reasons for the current dynamics:

• Improved on-site activity
• Volatile approvals for multi-unit projects
• Cost & labour constraints
• Policy & infrastructure timelines

1. The mobilisation of builders and contractors on previously approved projects led to increases in commencements and completions in 2024–2025 (WA completions reached their best level in over seven years).

2. Larger monthly percentage fluctuations have been observed in approvals for flat and medium-density developments, which reflect the complexity of pre-sales, financing, and planning. The decline in approvals in July 2025 was primarily due to flat nationwide approval rates.

3. Rising construction prices, workforce shortages, and regulatory complexity continue to be obstacles that can delay approvals and hinder the initiation of projects, according to industry associations and the media. Medium- and high-density projects are disproportionately impacted by these frictions.

4. Approval to shovel in the ground can be slowed down by local government procedures, infrastructure delivery (roads, water, sewage), and developer contribution requirements.

Local suburb-level factors in Perth that change the calculations

Not every suburb in Perth acts in the same way. The following micro-factors influence how approvals result in starts:

• Land supply & greenfield development approvals
• Inner-city planning overlays & density caps
• Proximity to economic hubs and infrastructure projects
• Local government efficiency

1. When infrastructure is funded, fringe suburbs with active developers and servicing capability can swiftly deliver a large number of starts and completions.

2. This contributed to the high volume of WA commencements and completions recorded for 2024.

3. Even when demand is high, fewer medium-density developments are started in inner suburbs with restricted zoning or sluggish planning procedures, which raises rents and values.

4. Developers favour projects with apparent end-user demand, thus new job hubs, road improvements, or improvements to public transport can speed up commencements.

5. The ability of the council to coordinate infrastructure and conduct assessments affects how quickly approvals are processed and when start dates can be planned.

Policy levers and industry solutions that close the gap

Several industry and policy strategies can decrease approvals, initiate divergence, and accelerate supply:

• Faster, clearer planning pathways for medium-density
• Infrastructure funding models
• Skills & training pipeline
• Finance innovation
• Data transparency

1. To save time and money, simplify the review process for pre-approved typologies (such as conventional townhouse templates).

2. To prevent protracted delays while contributions are being negotiated, consider using state-backed guarantors or forward-funding trunk infrastructure.

3. To increase the number of workers on-site, invest in apprenticeship programs and recognition. To lessen dependency on limited crafts, encourage off-site manufacture (modular construction).

4. To lessen developer pause, promote financing products that span approvals-to-start phases (short-term bridging loans linked to milestones).

To help agents, planners, and investors make better judgments, publish local pipelines (approvals, starts, and completions) at the suburb level. (Industrial associations, REIWA, and ABS are involved.)

5. These are the recurring themes in suggested remedies for housing supply friction, according to data from industry conferences and suggestions from organisations like the HIA. (For one example, see the HIA statement on increasing prefabrication and expediting approvals.)

Scenario planning: what to expect over 6–24 months in Perth

Three brief scenario paths, based on the possible development of the approvals that begin dynamically, are shown below. Please make use of them when creating marketing strategies and client recommendations.

1. Scenario A: Optimistic acceleration

• Approvals stabilise or climb, starts keep rising, and supply expansion surpasses immediate demand.  
• The outcome is a rise in stocks, a cooling but still healthy price growth rate, and moderate rents.  
• Agents should prioritise quality staging and prepare for a listing market that is slightly more competitive.

2. Scenario B: Moderate lag relief

• As of now, starts are rising gradually, but approvals for medium- and high-density developments are still erratic.  
• As a result, while inner-city rental shortages continue, some buyer pressure is relieved by fringe supply, and price increases in confined suburbs are still robust.  
• Agents should advise customers about greenfield choices and portray inner-suburb stock as scarce.

3. Scenario C: Pessimistic Stall

• A financial shock or significant cost escalation causes a decline in approvals and starts.  
• As a result, short-term rentals and prices rise, and supply becomes even more constrained.  
• Projects are delayed by developers, and off-plan sales plummet.  
• Agents should highlight the security of investment in completed stock and offer timing advice to sellers.

Perth appears to be heading towards Scenario B in 2024–2025, according to current statistics (ABS/WA government/CoreLogic/REIWA): high on-site activity and completions. Still, approvals remained inconsistent, particularly in medium-density.

How to use data in listings, CMAs and buyer packs (practical templates)

Include a brief data appendix that responds to three investor/seller enquiries in any client-facing papers you create at Bargoti Real Estate:

1. What is the local pipeline as of right now?

A brief table that lists approvals (number and kind), starts and completions by LGA or suburb, if applicable, during the previous 12 months.

2. When will the next supply arrive?

Give average approval, start, and finish dates for similar projects, such as mid-rise apartments (24–48 months), townhouses (12–30 months), and greenfield estates (12–36 months). Describe the uncertainty band.

3. In terms of pricing and rentals, what does the pipeline mean?

Brief bullet points, such as “Estate Y — many homes are anticipated to be completed in Q3–Q4 2026 → buyer competition may increase then” or “Suburb X — approvals limited, starts low → expect rental tightness.”

ABS building approvals and building activity (for official counts), REIWA (for local Perth insights), CoreLogic market reports (for price/value context), and WA government housing releases (for state-level completions/commencements) are some recommended data sources to include in client packs. For believability, use the same five reliable sources mentioned above.

Marketing hooks and messaging ideas based on starts vs approvals

• For sellers in tight-supply inner suburbs
• For buyers open to greenfield
• For landlords
• For developers

1. “Your neighbourhood has approved a limited amount of new supply; fierce buyer competition is anticipated.” (Supported by start numbers and local approvals.)

2. “Lock in today, move in later—new completions and estates are delivering homes in 12-18 months.” (Post pre-completion schedules for schools or highways.)

3. “High retention and potential rental uplift due to rental demand surpassing inner-city approvals.” (Offer a data-driven rent guarantee campaign.)

4. “Transparent timeline marketing: after the builder contracts, we only sell units.” (Improves conversion and lessens buyer uncertainty.)

Risks and caveats — the honest picture

• Data lags and revisions
• Local idiosyncrasies
• Macro shocks
• Developer-specific execution risk

1. Monthly approvals can fluctuate; the ABS series is updated and revised. Avoid overinterpreting one-month fluctuations without considering the makeup (houses vs. apartments) and moving averages.

2. State-level summaries and results at the suburb level can diverge significantly; local planning, transportation, schools, and amenities are all critical factors.

Changes in interest rates, inflationary shocks, or significant disruptions to the supply chain can quickly alter the link between approvals and starts.

3. Approved projects are not all created equal. Monitor the pre-sale, head contractor, and developer financial sheet levels.

Concrete checklists Bargoti can adopt immediately

1. Reports and data (weekly/monthly)

• Put Perth/WA highlights in Bargoti’s monthly market note and sign up for ABS building approvals and commencements updates.
• For changes unique to Perth, use REIWA weekly snapshots; for perspective on values, incorporate CoreLogic weekly property indicators.

2. Conversations with clients

Make three briefs that are one page long:  

• Buyers: pipeline timetable and risk checklist
• Sellers: current supply outlook
• Investors: rental outlook and yield scenarios.

3. Organising deals

Incorporate a box labelled “execution status” when marketing off-plan:

• Approvals ✓
• Builder hired ✓/✗
• Funding secured ✓/✗
• Anticipated start QX YYYY.

4. Local knowledge

• Keep track of approved but unstarted projects on your developer watchlist and record the reasons (financial, soil, legal).  
• This turns into a potent negotiating tool for both buyers and sellers.

Longer-term structural considerations (5–15 years)

• Density shift potential
• Modular & prefabrication take-up
• Infrastructure-led growth
• Climate and insurance considerations

1. Medium-density approvals may increase if Perth liberalises its infill policies like other Australian capitals, but only if financing and delivery models change. That would ease the burden on commuters and increase supply near places of employment.

2. Shorter approval-start times and more robust delivery against on-site labour shortages are two benefits of off-site production. Modular construction incentives from policy could hasten this change.

3. Coordinated land release linked to trunk infrastructure will be essential to the long-term delivery of dwellings. Large volumes can be delivered via Perth’s greenfield pipeline, but it will take consistent funding and coordinated planning.

4. Climate resilience may be taken into account in future building practices and approvals (flood zones, wildfire overlays), which could alter costs and schedules.

Example client communication: short note for a Perth seller

Subject: The current state of Perth supply and the reasons why selling your [suburb] house is a good idea today

Hello [Client], Quick market note: new inner-suburb rental stock remains restricted in the near term, according to the latest ABS and WA government data, which shows that while starts and completions in WA are increasing, approvals for inner/medium-density projects are still inconsistent. As a result, there is ongoing rivalry among buyers for attractive homes in [suburb]. Our listing kit will highlight scarcity and #neighbourhood benefits, and I suggest we move forward with a focused campaign scheduled for next month. A brief appendix with ABS and REIWA numbers will be included. — Bargoti Real Estate [Agent name]

Appendix — Data sources you should bookmark (and why)

• ABS Building Approvals (monthly) — official national and state counts of approvals; important for forward-looking supply signals.
• ABS Building Activity / Commencements — tracks when construction actually starts and work done; essential to measure pipeline delivery.
• REIWA Perth Market Reports & Forecasts — local insights, weekly snapshots and forecasts for Perth suburbs
• WA Government housing updates — state-level completions and program updates; useful to validate local delivery stats.
• CoreLogic Market Indicator Summaries — price trends and auction/transaction indicators that help connect supply flows to price outcomes.

Final synthesis — what Bargoti should say, simply

• Short line for marketing
• A strategic posture
• Long-run view

1. “Although there is a limited supply of new inner-city homes, demand is still high in Perth.” Make this the headline for investor briefings and selling packets.

2. Create a monthly “approvals vs. starts” snapshot for the Perth market and two in-demand suburbs to establish Bargoti as the data-driven local authority. Your listings and suggestions will be chosen by buyers and sellers who have faith in your data.

3. Although approvals are required, they are insufficient; whether supply eases depends on the number of starts and completions. The recent increase in starts and completions is beneficial for Perth, but some market segments may remain tight due to volatility in medium-density approvals. When marketing off-the-plan stock, employ developer execution checks and customise your client recommendations based on the product type and suburb.

Housing approvals show intent, but only starts and completions bring real homes to market. In Perth, commencements and completions are at their strongest in years, yet volatile approvals — especially for medium-density projects — keep supply uneven. This imbalance drives tight rental markets in inner suburbs and opportunities in greenfield estates.

For buyers, sellers, and investors, these dynamics shape pricing, competition, and timing. Bargoti Real Estate leverages this insight to provide clients with clear, data-driven advice, turning complex supply signals into practical strategies. Understanding approvals versus starts is essential for navigating Perth’s evolving housing market with confidence.

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