Approvals, completions and the investor

Australian Broker reported that building approvals are rising faster than homes are being completed, and cited PIPA Chair Cate Bakos on the link between the investor retreat and borrowing capacity.

What the article reported

Mina Martin reported for Australian Broker on the 21st of September 2026 on figures from the National Housing Supply and Affordability Council. Quarterly building approvals are 26 per cent higher, and commencements 15 per cent higher, than before the Housing Accord began. About 308,000 homes have been completed in the Accord’s first seven quarters, with a record 244,000 dwellings under construction in the March quarter.

Access Wealth managing director Dory Senior said the gap between approvals and completions is not well understood outside the property sector, and that some investor capital may leave residential property altogether. The article cited Cate Bakos, Chair of PIPA, who has linked the investor retreat to reduced borrowing capacity rather than weaker sentiment, a point covered in investor lending after the budget.

Why the gap matters to a buyer

The budget directs investor tax benefits to newly built dwellings. For an investor buying off the plan or under a building contract, the risk sits between approval and completion. It includes construction delays, builder solvency and cost increases. For an off the plan purchase, it also includes a valuation at settlement that may be lower than the contract price. The article concluded that construction finance and pre-sales risk deserve closer attention than approval figures suggest.

Before committing, an investor should establish:

• The developer’s and builder’s record of completing projects on time.
• The sunset clause and the rights it gives each party.
• The funding position of the project.
• Whether their lender will value and finance the dwelling at completion.

The article also cited one client’s rising valuation in an outer growth corridor. Investors assessing such a corridor should rely on the sales record of comparable completed dwellings in the same estate rather than on individual examples.

Further reading

PIPA’s checks for buying new are set out in checks before building an investment property and new apartments and the next buyer. Developers and project marketers often pay commissions to those who introduce buyers, and the PIPA Code of Conduct requires members to disclose them. Advisers holding the QPIA accreditation are listed in PIPA’s adviser search.