NEW ABS building approval and finance data reveals the size of the challenge ahead for the ACT to deliver the local government’s commitments under the National Housing Accord, says Michael Hopkins.

The Master Builders ACT CEO said: “Building approval figures show 4196 total dwellings have been approved for the 12 months to August – 21 per cent below their five year average of 5299.

“The shortfall is most pronounced for detached houses, which are at 26 per cent below their five-year average, while new medium and high-density dwelling approvals are 22 per cent below the five-year average.

“It is not sustainable for residential building approvals to remain at such low levels if we are to meet the demand for new housing that is required to service our growing population.

“While building approvals remain stubbornly low, the size of home loans to owned occupiers has rocketed up $81,700 in the past year to become the highest loan value of any Australian state or territory.

“The average loan value for owner occupiers to purchase a newly approved home sits at $744,400 – nearly $165,000 higher than the Australian average.

“These figures reveal the size of the challenge confronting the ACT if we are to deliver sufficient supply and affordability of housing to meet our future needs.”

“Measures contained in the new ACT Territory Plan to allow separately titled dual occupancies up to 120 square metres are a good first step to increasing housing supply, however, much more needs to be done to remove barriers to delivering more affordable and appropriate housing.”