Developers send warning as new home sales collapse

Tuesday 25 August 2026

As has been well documented, Australian dwelling completions are tracking 27% (112,400) below the National Housing Accord’s target of 1.2 million homes over five years, which requires a construction run rate of 240,000 homes a year.

The outlook has also worsened recently amid soaring construction costs and the steep house price correction, which has made developments more financially risky.

Earlier this month, leading apartment developer Tim Gurner warned that the house price correction, coupled with the federal budget’s investor tax changes, elevated interest rates, and rising construction costs, has made development problematic:

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.