While house approvals are on the rise, Australia is still approving too few apartments, warns the Property Council of Australia.

In September, approvals for townhouses and apartments increased by 4.7% to 4,653, yet this follows a 13.5% drop in August, keeping overall levels low.

Over the past year, only 56,186 apartment and townhouse approvals have been recorded, compared to 102,323 in 2018.

Matthew Kandelaars of the Property Council says Australia won’t meet its housing targets unless both house and apartment approvals increase.

“We’re simply not approving apartments at the necessary levels,” he says, citing high construction costs, slow planning processes, and taxes that hinder apartment projects as factors limiting supply.

While more than 40% of Australians support high-rise apartment developments, the latest REA Property Seeker Survey shows most don’t want them in their own neighbourhoods.