Property Council NSW Executive Director Katie Stevenson called for continued efforts to drive more approvals through the system faster.
"Just 41,711 dwellings were approved in the 12 months to September - far short of the more than 75,000 a year required for us to get anywhere close to our National Housing Accord target," Ms Stevenson said.
"The seasonally adjusted data show total dwelling approvals in NSW in September fell 15% on the previous month – from 3,425 in August to 2,918 in September - the worst monthly performance since January 2023."
Ms Stevenson said the property industry welcomed recent media speculation of further planning reforms being considered by the NSW Premier.
"For industry and the public to stay confident, we need to see real progress on housing delivery. This means bold government action to address development feasibility, especially as even approved projects are proving unviable," she said.
"Signs that the Government is considering new ways to make faster decisions on significant housing developments are welcome - this was something we managed to achieve during the pandemic, and it's no less of an emergency now.
"All councils, and the state government, need to have their eyes firmly on the housing prize. That means focused efforts to cut the red tape and speed up approvals across the board to make home ownership and affordable rental a reality for more NSW families."
