Big Lift In Approvals But Housing Recovery Not Yet Assured

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5th May 2010, 03:02pm - Views: 560





Industry Construction Master Builders Australia 1 image

Industry Construction Master Builders Australia 2 image

Media Release








5 May 2010


BIG LIFT IN APPROVALS BUT HOUSING 

RECOVERY NOT YET ASSURED

Statement by Peter Jones, Chief Economist

A spike in the more volatile ‘other dwellings’ component that includes apartments and townhouses

has driven a big increase in dwelling approvals in March, according to Master Builders Australia,

the peak body for the building and construction industry.

Mr Peter Jones, Chief Economist, said “There are signs investor-driven activity may be beginning

to overcome lingering effects of the credit

squeeze however

the recovery in detached house

approvals appears to have stalled”

“A sustained upswing in residential building is by no means assured with headwinds in the form of

the end of the First Home Owner ‘boost’ and rising interest rates.”

He said, “The Government’s social housing stimulus spending is helping, with public sector

approvals up almost tenfold on levels of a year or so ago.”

“Higher interest rates could pull the rug out from the private housing market if

investors and

homebuyers stay on the sidelines.”

“Master Builders urges the Reserve Bank to take a more cautious approach on interest rates and

ensure the recovery in residential building regains momentum.”


The total number of dwelling units approved, seasonally adjusted, rose by 15.3 per cent to

16,383 in March, to be up by 51.6 per cent on the same month in the previous year.


Private sector house approvals rose

by 0.5

per cent to

9,779

to be up 29.7

per cent on the

same month last year. 


The more volatile private sector ‘other dwellings’ (apartments and townhouses), rose by

59.9 per cent in March to be up 56.0 per cent on March 2009.


Public sector dwelling units rose by 25.6 per cent in March, to be 496.5 per cent higher than

the same month last year.


For further information:

Peter Jones, Chief Economist, Office: 02 6202 8888, Mobile: 0403 440 838






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