Property Council of Australia NSW Executive Director Katie Stevenson said the uptick was a positive sign, but that the number remained far too low.
"This is a step in the right direction, but we're still starting from a worryingly low base," Ms Stevenson said
"With just 42,776 dwellings approved in the past year, we're only halfway to being anywhere close to meeting our Housing Accord target of 377,000 new homes by 2029," she said.
Ms Stevenson said while the NSW Government was taking action, more urgency was needed.
"Initiatives like council league tables, AI-driven planning solutions, and increased funding for local planners are all promising, but the clock is ticking and every day counts," Ms Stevenson said.
"The data for July - the first full month of the five-year Housing Accord – are going in the right direction at last, but we need to see sustained growth.
"Councils and state government need to be pulling out all the stops to deliver their planning functions efficiently and effectively to help us reach our shared target," she said.
Ms Stevenson said NSW Housing Minister Rose Jackson's recent critique of Sydney Water's performance on land release and enabling infrastructure showed a welcome shift in focus.
"Industry has long flagged slow decision-making by agencies as a major roadblock to housing delivery.
"It's taking too long for pipes to go where they're needed and, in the middle of a housing supply crisis, we need all arms of government working to unlock more opportunities to get homes built.
"We need to cut the red tape and speed up approvals across the board if we're going to make home ownership and affordable rental a reality for more NSW residents," Ms Stevenson said.
Visit the ABS for the latest data on building approvals for July 2024.
