Rising Home Approvals: What Buyers & Investors Should Know
The federal government has just pushed back its timeline for building 1.2 million new homes, with the 1.2 million-home target now expected to be reached by the end of 2030, later than the original June 2029 timeline. Headlines like that can sound discouraging. But as mortgage brokers who work with buyers and investors every day, we're looking past the delay and straight at the numbers underneath it, and there's a lot to like.
Here's what's actually happening
According to the National Housing Supply and Affordability Council's latest advice to government, housing approvals are up 26 per cent, and commencements are up 15 per cent since the National Housing Accord began. Construction costs are also settling down, easing from a 17 per cent annual blowout back in 2022 to a much steadier 3.8 per cent now, roughly in line with inflation.
Translation: more homes are getting the green light, more are being built, and construction cost growth has also moderated. Planning reforms unlocking land and increasing density are also strengthening the pipeline of new homes coming through strengthening the pipeline of new homes coming through.
What we're seeing on the ground
Demand for housing hasn't gone anywhere. In fact, Australian Bureau of Statistics data shows investor loans for new dwellings are sitting at a record high. The article also notes that new dwellings remain eligible for negative gearing under the federal tax changes. For investors, new-build opportunities should be assessed based on location, finance structure, costs, and long-term strategy.
We're also fielding more questions from first-home buyers keen to get into growing suburbs where supply is starting to move. If you've been holding off because of headlines about delays, it's worth remembering. Rising approvals and commencements may support more housing supply over time if projects proceed to completion.
What does this mean for your next move?
- Building or buying new? Construction loans can be structured to match staged payments to builders, so your cash flow stays manageable.
- Investing in a new dwelling? With new-build investor lending at record levels. Investors may want to compare how construction or investment finance differs from buying established property.
- First home buyer? New planning approvals may contribute to additional housing supply over time.
- Not sure where you sit? Borrowing power, deposit position, and loan structure all shift depending on whether you're buying off-the-plan, building, or purchasing established.
Housing policy will keep shifting, but the fundamentals for buyers and investors- borrowing power, loan structure, timing- stay firmly in your control.
For tailored advice or to discuss your buying strategy, contact KM Financial Service. With 20 years of experience helping clients across Australia, our team can help you understand where you stand and what lending options may be available.
Call 0402 879 531 or book a free consultation today.
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