The latest ABS data shows NSW Building Approvals jumped by 30.4% in September 2025 but the state’s chances of meeting the Federal Government’s NSW housing target remain a challenge.
 

Matthew Pollock, Executive Director of Master Builders NSW welcomed the positive result for NSW. “Over the year to September a total of 51,743 new homes were approved in NSW. This is a 21.8% jump on the previous 12 months. However, this remains well short of the Housing Accord target set for NSW by the Federal Government of 75,146 new homes per year.

 “However, new data also shows the industry faces increased cost pressures on the construction of apartments and non-residential construction.

“On average, input costs into apartments jumped by 3.8% over the year to September 2025.

“Input costs into non-residential buildings jumped by 3.9% over the same period.

“Sydney also experienced a jump in inflation of 1.5% in the September 2025 quarter and 2.9% over the previous year. A 5.6% increase in the Property Rates and Charges component which includes waste levies and local taxes and charges contributed to the increase of inflation in NSW.

“Rising costs are continuing to place pressure on the feasibility of projects, particularly high-rise residential developments which combined with building completion times of over 3 years pose a too often insurmountable challenge to getting these projects out of the ground.

“The Minns Government’s proposed planning reforms, which are currently being blocked by the Greens, will cut red tape and speed up the pace of housing construction if passed by Parliament. Master Builders call on the Greens to be builders not blockers and pass these vital planning system changes when the NSW Parliament resumes sitting next week.”

 

Media contact: Ben Carter | Head of Government Relations, Marketing & Corporate Affairs | 0447 775 507 | bcarter@mbansw.asn.au