Multi-unit completions drive a 5.8% rebound in Australian home building

Australia finished more homes and started more construction during the June quarter, but the improvement was uneven across dwelling types and states.

The Australian Bureau of Statistics recorded 47,168 dwelling completions in seasonally adjusted terms, up 5.8 per cent from the March quarter and 15.9 per cent from a year earlier.

The strongest contribution came from private-sector apartments, townhouses and other attached housing. Completions in this category climbed 13.9 per cent over the quarter to 19,018, while completed private houses edged up 1.4 per cent to 27,039.

That matters for buyers and renters because multi-unit projects generally deliver many homes at once. A rebound in apartment and townhouse handovers can add more usable supply to established metropolitan areas than a similar change in detached-house activity.

However, the figures measure homes reaching completion after what may have been several years of planning, finance and construction. They should not be read as evidence that today’s higher interest rates and development costs have stopped affecting the future pipeline.

Starts improve, led by houses

Dwelling commencements rose 7 per cent to 52,201 during the quarter, according to the ABS. Private detached-house starts jumped 11.6 per cent to 31,707, while other residential commencements were almost unchanged at 19,126 after falling sharply in the March quarter.

This creates a mixed outlook. The lift in house starts should support future supply in greenfield estates and regional markets, but apartment construction did not record the same quarterly recovery.

The distinction is important because Australia’s largest cities need both forms of housing. Detached houses can expand supply on urban fringes, while apartments and townhouses are central to adding homes near jobs, transport and existing services.

There were 248,733 dwellings under construction at the end of June, including 95,447 new houses. The total has risen from 224,571 a year earlier, indicating that builders still have a substantial workload to finish.

The value of new residential building work completed during the quarter rose 1.4 per cent to $23.6 billion in inflation-adjusted terms. Work on alterations and additions also increased 1.3 per cent to $4.1 billion.

State results point in different directions

New South Wales recorded 13,332 seasonally adjusted completions in the June quarter, up from 10,274 in March. The NSW Government said 49,545 homes were completed across the full financial year, its highest annual result since 2020-21 and 16 per cent more than in 2024-25.

NSW commencements nevertheless eased from 11,907 in March to 11,252 in June, showing why one strong completion quarter does not guarantee the same momentum further along the pipeline.

Victoria completed 14,191 dwellings during the quarter, the largest number among the states shown in the ABS release. The Property Council calculated that Victoria completed 56,303 homes over the year, only seven more than in the previous 12 months.

There was a more encouraging forward signal for Victoria, where quarterly commencements reached 16,239, the state’s highest result since March 2023.

Queensland also strengthened, with 9,549 completions and 11,671 commencements. Western Australia recorded 7,240 starts, up from 5,930 in March, but completions fell to 4,814. South Australia started 3,913 homes and completed 3,112.

These movements illustrate the lag between beginning and finishing a dwelling. A state can record rising starts while completions weaken, or finish a large batch of projects even as fewer new ones get underway.

Supply is improving, but the required pace is higher

The National Housing Accord aims for 1.2 million well-located homes over five years, equivalent to an average of 60,000 each quarter. The June result of 52,201 starts was an improvement but remained below that simple quarterly benchmark.

The Housing Industry Association estimated that commencements across the accord’s first two years were 94,980 dwellings behind the cumulative target. Its calculation highlights the scale of the challenge, although quarterly construction figures can be volatile and the target will ultimately be assessed over the full five-year period.

For the market, the latest release is best viewed as a welcome lift rather than a decisive supply turnaround. More homes are being handed over and house starts have increased, but sustained apartment commencements will be needed if the rebound is to broaden and ease pressure in established urban markets.

What it means for you

• Buyers may see more newly completed apartments and townhouses reach settlement or resale markets following the June-quarter surge.
• Renters benefit only when completed homes become available for occupation, so commencements are a longer-term signal rather than immediate relief.
• Sellers face different conditions by location, with NSW completions rebounding while Victoria’s annual output was effectively flat.
• Off-the-plan buyers should continue checking construction progress and finance conditions because national data cannot show the status of an individual project.