A significant rise in apartment and unit approvals has propelled the Hunter Region's total dwelling approvals to their highest point in almost four years, offering a glimmer of hope for the state's housing supply crisis.
Approval Numbers Show Strong Growth
The latest data reveals that annual building approvals across New South Wales, a key early indicator of future housing supply, climbed to just under 52,000 for the 12 months to November 2025. This marks the highest 12-month figure since May 2023 and represents a substantial 21 per cent annual increase.
Focusing on the Hunter, the region saw 5,101 dwelling approvals in the 2024-25 period. This total comprised 2,817 houses (55.2 per cent) and 2,284 other residential dwellings (44.8 per cent), such as flats, units, and apartments. The strong performance is linked to new housing developments on the fringes of Maitland and Lake Macquarie, coupled with the ongoing release of apartment projects in Newcastle's city centre.
Experts Warn Targets Still at Risk
While welcoming the uplift, the Urban Development Institute of Australia (NSW) sounded a note of caution. Chief Executive Stuart Ayres stated that approvals remain significantly below the level needed to support the NSW Housing Accord target of 377,000 new homes by June 2029.
"Today's approvals data... represents green shoots in relation to policy interventions by the NSW Government," Mr Ayres said. "However, approvals across all housing types remain significantly below the level needed to meet our housing targets."
He highlighted that while apartment approvals reached a four-year high of 17,500 statewide, they are still 53 per cent below their previous peak. More concerning, he said, is the flatlining of detached home approvals, which are 30 per cent below their peak from November 2021. "Detached homes are currently the most feasible product to deliver in NSW," Mr Ayres emphasised. "We can't afford to see anaemic growth in this segment."
Planning Reforms Aim to Accelerate Delivery
In a bid to fast-track construction, more than 1,750 new homes slated for the Lower Hunter are being expedited under a major rewrite of NSW planning rules. The overhaul, which took effect in September last year, empowers the three-person Housing Delivery Authority to fast-track major residential proposals, bypassing local councils.
Key reforms include creating a single "front door" for development assessments. More than 20 large Hunter developments have been put forward to the authority, including major projects in Newcastle's CBD such as proposals for Dangar Street, Parry Street, Hunter Street, and Darby Street.
Plans have also been lodged for a substantial $360 million development in a rural area on the outskirts of Maitland, signalling continued confidence in the region's growth corridors. The latest detailed data for the Hunter region is scheduled for release next week.
