Housing approvals fall to lowest level in 12 years despite Labor’s pledge of 1.2m new homes

Housing construction in Sydney in NSW, where approvals fell steeply in June. Photograph: Dan Himbrechts/AAP

New dwelling approvals in Australia have sunk to their lowest in 12 years, as developers battle high interest rates and rising labour and material costs.

For the year to June, 162,892 houses and apartments secured approval, down 8.5% on the previous year and the least since 2011-12, the Australian Bureau of Statistics reported on Tuesday.