Australia saw a significant uptick in new home building approvals in the 2024–2025 fiscal year, which industry observers characterise as an indication that developers and builders are meeting ongoing demand.  

According to the Housing Industry Association (HIA), new home building approvals increased 13.9% in 2024–2025 compared to the previous year, indicating a significant increase in new home approvals nationwide.

The situation is complex for Perth and Western Australia: completions continue to lag behind demand and population growth, while approvals and commencements have rebounded from recent lows.  

Perth is seeing rapid price increases, with an increasing number of areas now falling into the million-dollar median, according to REIWA’s state and metro-level statistics. This suggests that demand pressure is still high even as approvals are increasing.

This blog analyses the data (ABS & REIWA), breaks down the factors that led to the increase in approvals, and translates the implications for buyers, sellers, landlords, and developers. It also offers viable local tactics designed explicitly for Bargoti Real Estate’s customers operating in the Perth market.

Why building approvals deserve attention

1. Building approvals demonstrate developers’ and builders’ intent to construct, making them an early predictor of the housing supply pipeline.

2. An increase in approvals indicates that builders feel the conditions (financing, demand, margins, and labour access) are compelling enough to submit applications and commit resources, even though approvals do not equate to completed homes.

3. Persistent increase in approvals has significant ramifications for supply-

• Demand balance
• Rental vacancy rates
• Resale dynamics

4. In Perth, interstate migration, population expansion, resources-industry activity, and a shortage of new supply have all contributed to price increases.   

Approvals must be interpreted with caution, though, as any single signal does: the geographic mix (houses vs. units), timing to completion, and cancellations all contribute.

Where the numbers come from — ABS, HIA and REIWA (quick primer)

Together, these three sources enable us to triangulate: REIWA displays Perth-level results (sales, medians, listings), HIA offers sector analysis, and ABS provides the raw approvals figures.

• The number of homes approved, the prices of residential and non-residential building work, and state breakdowns are all included in the monthly and quarterly building approvals and building activity releases published by the Australian Bureau of Statistics (ABS). The primary source of official approvals data is the ABS.
• The Housing Industry Association, or HIA, compiles and evaluates ABS data as well as other signals from the construction sector.
• According to the HIA comments, new home approvals in 2024–2025 increased 13.9% from the 2023–2024 low, which provides a helpful industry-level view of the momentum in the country.
• Weekly snapshots, market comments, data unique to Perth and Western Australia, and suburb-level success indicators (such as which suburbs became part of the million-dollar club in 2024–2025) are all provided by REIWA (Real Estate Institute of Western Australia).  
• The interpretation of how listings and approvals affect local pricing and transaction outcomes is aided by REIWA insights.

The headline: 13.9% — what it is and what it isn’t

1. What it is:

• HIA’s 2024–2025 figure of 13.9% shows a rebound from the 2023–2024 low.  
• It demonstrates that, overall, more homes—especially new ones—were approved throughout the fiscal year.  
• This is significant because approvals are a prerequisite for further supply.

2. What it isn’t:

• Approvals don’t mean that a project is finished right away.  
• A 13.9% increase does not immediately increase rental stock or alleviate the supply shortage.  
• Approvals may be concentrated in specific local government areas (LGAs) or in units rather than house approvals, which impacts the sorts of dwellings coming online.
• Projects may also be postponed, cancelled, or reprioritised.

Therefore, we need to look at the geographic distribution (Perth metro vs. regional WA), where approvals are increasing (houses vs. apartments), and whether construction starts and finishes are keeping pace with approvals.

Key Perth/WA signals (what the data shows right now)

• Western Australia saw positive month-over-month increases in approvals for many of the 2024–2025 months and into 2025, according to ABS releases.
• In several months, the state frequently posted one of the most significant increases compared to other states.  
• Breakdowns by state can be seen in the ABS monthly building approvals comments.
• In the year ending in June 2025, 27 townships joined Perth’s million-dollar club, bringing the total number of suburbs with median house prices of $1 million or more to 113.
• This is a sign of ongoing demand and the reason why approvals have increased, according to REIWA reporting for 2024–2025.  
• According to REIWA, low listings and few completions are the leading underlying causes of price pressure.
• Through 2025, REIWA’s market pages and weekly snapshots continue to display high transaction volumes and few active listings, indicating that although approvals are increasing, market tightness persists.

What to watch in the ABS tables (how Bargoti agents can use them)

• Dwellings approved by the sector
• State-level seasonally adjusted series
• Value of residential building

1. Private sector homes versus private sector dwellings excluding homes — that is, apartments/units: A move towards more unit approvals will have a different effect on investor attraction and affordability than new detached homes. ABS provides them every month.

2. WA’s percentage change can be compared to national averages to determine whether the state is excelling or merely following national trends. Helps determine if approvals are for volume homes at lower costs or for projects with higher value.

Drivers behind the approvals jump

Approvals don’t just happen. In 2024–2025, several structural and cyclical factors have worked together to increase approvals:

1. Demand-side drivers

• Interstate and foreign migration have contributed to WA’s population expansion, which continues to be a structural demand driver.  
• Both the REIWA comments and the WA Government’s population growth projections indicate that housing demand will continue to rise. (See market commentary for Perth, WA.)
• Due to Perth’s continued reliance on mining and resources, local earnings are supported, which in turn supports the need for housing among well-paid contractors and employees and encourages developers to submit applications for new townhouses and residences.
• Tight rental markets encourage fresh project proposals from investors and build-to-rent developers, increasing approvals.

2. Supply-side/cost dynamics encouraging approvals

• Following a period of low activity and significant margin pressure, builders pursued new projects and approvals as a result of an improved sales pipeline and somewhat better material availability.
• Developers have occasionally been compelled to take action by state-level incentives (infill, infill infrastructure schemes), local council fee waivers, or expedited clearances for specific precincts.
• Developer financing and investor finance recovered sufficiently to make project proposals viable once again as funding costs levelled off from their peak rates earlier in the cycle.

3. Timing & cyclical rebound

• The 13.9% number is primarily a recovery from a low point in 2023–2024.
• In other words, it is partially a cyclical recovery as builders who put off projects during more difficult times return to the market in 2024–2025.  
• This explains the significant fluctuation in percentage from year to year.

Why approvals don’t instantly solve Perth’s supply problems (constraints & frictions)

Although an increase in approvals is encouraging, structural limitations impede the conversion of approvals into deliverable homes:

• Labour shortages and subcontractor capacity
• Materials and input price volatility
• Land supply and servicing
• Planning delays and approvals complexity
• Concentration risk (geography and product mix)

1. On-site work is slowed by contractor insolvencies both nationally and specifically in Western Australia, as well as shortages of trades, including electricians, carpenters, and bricklayers. Recent contractor failures in WA highlight the ongoing instability of the supply chain.

2. Increased or fluctuating prices for concrete, steel, and timber may cause delays or necessitate redesigns.

3. Greenfield precincts in Perth may have to wait an extended period for infrastructure maintenance. When approvals are concentrated on small-lot or infill projects, the number of units and price points offered differ from those of greenfield estates.

4. Changes in planning overlays, homeowners’ association talks, or thorough engineering can still halt approvals that have been given at one level (state/DA).

5. The majority of permits may not improve affordability in development corridors where the supply-demand mismatch is most pronounced, particularly for luxury projects or apartments in inner Perth.

What this means for buyers (owner-occupiers)

1. Short-term (0–12 months)

• Despite increases in approvals, buyers can anticipate ongoing competition for well-presented properties due to low active listings and speedy sales in many Perth suburbs.  
• According to REIWA’s weekly snapshots, there are very few active listings.
• Buyers should obtain a finance pre-approval and be prepared to move swiftly on properties that fit their requirements.

2. Medium-term (12–36 months)

• It is anticipated that a greater number of medium-density developments (townhouses, flats) would be completed before large-scale greenfield estates due to the economics and developer interest.  
• For first-time homebuyers and downsizers looking for lower-maintenance homes, this will increase their possibilities.
• Compared to inner-ring districts with high demand, affordability pressure may reduce more in locations where approvals bring in an ample supply of housing, especially units and small lot homes.

Tactical advice for buyers (Bargoti clients)

• Decide whether your top priority is immediate lifestyle (school catchments), capital growth (location), or rental yield (investor).
• The new supply will have varying effects on different suburbs.
• Access to new stock may be available off-plan, but be aware of the builder’s history, completion schedules, and sunset provisions.  
• Building history and HIA/insurer checks should be commissioned by Bargoti agents.
• Utilise supply intelligence at the local level by looking at REIWA suburb dashboards to see where approvals are concentrated.  
• Long-term resale forecasts should take into account a suburb’s high number of unit approvals.

What this means for sellers in Perth suburbs — tactical recommendations

• If you’re selling in a suburb with rising approvals
• If you’re selling where approvals are limited
• For vendors considering new development or subdivision

1. Even when new supplies are arriving, time-to-sell can be shortened with precise landscaping, high-quality images, and minor remodelling tweaks, such as decluttering and new paint. The market is booming; overpricing leads to re-lists; set your price in accordance with REIWA medians and Bargoti’s local comps.

2. Marketing messaging should highlight the land size, heritage aspects, and stock scarcity, as these elements draw in premium buyers. Bargoti can employ targeted buyer lists and auction scheduling to maximise sale price; lower-inventory suburbs draw serious bidders.

3. Make a contingency for cost inflation, assume a delay between permission and completion, and confirm demand using REIWA suburb data and Bargoti market intelligence.

Investor playbook — yields, build-to-rent, and strata opportunities

• Yield vs capital growth: sectoral nuance
• Build-to-rent (BTR)
• Strata & brick veneer risk

1. Investors looking for higher yields should look at rental demand in locations where new supply will materialise in a market where median prices are rising and unit approvals are increasing. Tenants priced out of homes are frequently drawn to apartments—still a major driver of capital growth in affluent communities with good schools and amenities.

2. BTR projects may become more viable in Perth because of low vacancy and institutional interest. Think about developer partnerships or investor syndicates when approvals allow for larger multi-unit buildings.

3. Strata management responsibilities increase with the number of approved units. Investors should factor in strata fees, sinking fund contributions, and any special levies if the buildings are old or require repairs.

What are the practical investor steps?

• Target suburbs with modest planned supply in relation to local population growth—that is, regions where permits are adding units without flooding the supply. Map planned growth using the suburb reports from REIWA.
• Examine the factors that influence rental demand, such as accessibility to public transport, hospitals, universities, and large businesses.
• Plan for adverse outcomes, such as postponed completions, increased vacancy, or brief declines in yields; maintain cautious cash flow margins.

Development & builder perspective — margins, timing and risk

1. Where the economic opportunity lies

• Faster time-to-market and less financial exposure are typically provided by shorter build cycles and quicker approvals than high-rise.  
• Speculative construction can be lucrative in areas with reasonably priced land; however, contractors must carefully manage cash flow and presales.

2. Risks developers must manage

• Recent local contractor failures demonstrate the risk of mid-project collapses.  
• Make sure you have strong HIA insurance, speak with legal counsel, and conduct due diligence on contractors.  
• Lock critical contracts and provide for contingencies if possible.  
• To cut down on rework and delays, maintain community involvement and design sensitivity.

Local marketing & pricing strategies for agents at Bargoti Real Estate

Bargoti agents should use the following strategy in light of the approval environment and continuous demand-pressure indications :

• Create property-level narratives using ABS data and REIWA suburb dashboards, such as “Why this suburb is scarce” or “Why more apartments are coming nearby.”
• These narratives help guide pricing and marketing strategies.
• Buyers should be divided into downsizers, families, investors, and first-time homebuyers.  
• Employ customised messaging: yield and minimal strata fees for investors; proximity to schools for families.
• In suburbs with high demand and low inventory, auctions can optimise the sale price.  
• The risk of price erosion can be reduced in high-supply precincts where approval pipelines will bring new units through private sales with adjustable closing windows.
• Give suppliers a one-page “supply impact memo” that details neighbouring approvals, the anticipated completion date, and the anticipated competitor stock in the next 12 to 24 months.  
• This openness prevents shocks and increases credibility.

A short forecast (practical)

• Over the next 12 months, the momentum from approvals should increase commencements; more medium-density products should be on the horizon. Completions, however, will be delayed.
• Detached-housing shortages may persist in growth corridors unless greenfield servicing picks up speed, but supply from approvals will start to slow price acceleration in specific segments (units/inner-ring) after 12 to 36 months.

Actionable next steps

• Buyers: use Bargoti’s suburb-level analysis to identify regions where upcoming supply fits your needs, obtain financial pre-approval, and only consider off-the-plan after conducting due diligence.
• Sellers: before listing, get Bargoti’s “supply impact memo” and make sure your property is positioned and timed to stand out.
• Investors should stress-test cash flows, avoid micromarkets with high incoming unit supply, and look for BTR prospects where there is institutional demand.
• Developers: employ Bargoti channels for focused presale campaigns; stagger sales, secure presales, and reduce build/contractor risks.

Primary sources referenced in this briefing

1. ABS — Building Approvals, Australia: official monthly and quarterly releases that include the authoritative series on residential building value and dwellings approved (by state, by sector)—useful tables: State and sector-approved residences; building value by kind.

2. New house building approvals increased 13.9% in 2024–2025, according to HIA’s study, indicating a recovery from the 2023–2024 low and better builder sentiment. Utilise HIA to understand ABS data in an industry-specific manner.

3. The pages of REIWA, which tracks weekly snapshots, suburb medians, and commentary, provide market statistics and suburb reports for Perth and Western Australia. Notably, according to REIWA, 27 areas joined Perth’s million-dollar club in 2024–2025, demonstrating low listings and a robust price rise. For a strategy tailored to a particular suburb, REIWA’s local information is essential.

4. Industry and news: a variety of local and industry news sources (such as BrokerNews, Realestate.com.au, and local newspapers) offer background information on policy, unit market dynamics, and contractor insolvencies. Recent contractor failures in Perth demonstrate project risk.

Summary

In keeping with increasing builder activity and developer confidence, Australia’s housing pipeline is showing positive momentum with a 13.9% increase in new home approvals for 2024–2025. Although approvals are encouraging for Perth, they do not immediately address low listings or a constrained supply, which is why prices and competition are still high in many districts. Even as approvals rise, the Perth market is still seller-friendly, according to REIWA’s measurements; the subtleties lie in the additional supply’s product mix and geographic distribution.

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