Tasmanian housing approvals slump as stimulus effect wanes

Dwelling approvals by councils decreased by 11.8 per cent in September and were down by 23 per cent compared with September last year, according to state Treasury analysis of seasonally adjusted Australian Bureau of Statistics figures.

The figures showed an approvals boom which took off in late 2020 had ended and approvals were now back at about 2017 levels.

"The decline in building approvals over the last few months may reflect the conclusion of the federal and state housing stimulus measures which had been supporting high levels of new building approvals," Treasury said.

Master Builders Tasmania executive director Matthew Pollock said builders remained very busy and some were so busy they were having to refuse new work.

Mr Pollock said that might be part of the reason why approvals had dipped.

He said the approvals figures were starting to suggest the end of the housing construction boom fuelled by government stimulus.

"We need to keep a close eye on it because we do need to keep the momentum up in new housing construction to start putting some downward pressure on housing costs," he said.

"Housing affordability is still a challenge."

He said a shortage of housing was partly behind the very strong growth in house prices in Hobart and the regions.

"The first step in solving that housing affordability challenge is boosting supply," he said.

Mr Pollock said Master Builders Tasmania forecast 30,000 homes would need to be built in the next decade to keep pace with expected population growth while addressing the shortage of housing stock.

The ABS said 810 dwellings were approved statewide in the first three months of the financial year.

The Clarence municipality had the most approvals ( (116), followed by Hobart (99).

Launceston (61), Latrobe (53) and Sorell (51) were the others with more than 50 approved dwellings.