New data signals a boost for Australia’s property and construction industries, with signs of recovery despite ongoing hurdles, according to advisory firm RSM Australia.
The Australian Bureau of Statistics’ latest Building Activity data for the March 2025 quarter reveals a surge in dwelling commencements, jumping 11.7 per cent to 47,645 dwellings in seasonally adjusted terms.
Despite the upswing in new projects, total dwellings completed dipped 4.4 per cent over the period to 43,517, underscoring persistent challenges in bringing projects to completion.
Adam Crowley, RSM Australia National Real Estate & Construction Lead, said the data reflects a tide of growing confidence across the sector.
“Today’s data is consistent with what we’re hearing from our clients – sentiment and confidence is starting to improve across the sector,” Crowley said.
“Improved access to finance, accelerated planning approvals and increased investor participation have all contributed to the strong rebound in private sector other residential commencements.”
Crowley added that the momentum in commencements is a welcome step toward national housing targets.
“Critically, the surge in commencements moves Australia closer towards the target of building 1.2 million homes over five years.
“While still below the target average of 60,000 homes per quarter, the 47,645 commencements for the March quarter represents meaningful progress and will hopefully contribute to replenishing Australia’s dwelling supply pipeline – key in addressing the ongoing housing shortage.”
Looking ahead, Crowley notes that the sector’s optimism is tied to market fundamentals and sentiment.
“As capital continues to come down and developers gain more confidence that their finished product will maintain value, we expect to see this optimistic sentiment grow among the industry.
“We’ll be closely watching the next release to validate that this upswing isn’t just a one-off bounce but part of an emerging recovery trajectory.”
RSM Australia Economist Devika Shivadekar cautioned that mixed results signal an industry still contending with structural challenges.
“While the sector is successfully initiating new projects and maintaining strong commencement activity, it’s clear the industry is still battling completion timelines,” Shivadekar said.
“This is likely influenced by ongoing supply chain and labour market dynamics affecting the industry’s ability to finish projects at pace.”
The data offers a promising snapshot for an industry that has faced sustained turbulence, with stakeholders keenly awaiting evidence that recovery will gain further traction in the months ahead.
