Fall in August building approvals a concern – REINSW
1 October 2009
The REINSW says the drop in new building approvals in August is another sign
for the Reserve Bank to keep interest rates on hold.
The latest Australian Bureau of Statistics data for August 2009 shows new
building approvals in that month fell nationally by 0.1%
“This result is well below the forecast of 2.5% predicted by commentators and
shows that recovery remains fragile”, said REINSW President Steve Martin.
“This unexpected drop in building approvals should be another clear warning to
the Reserve Bank to keep a hold on interest rates until recovery becomes more
stable.
“In recent months we have seen building approvals rise and fall over successive
months indicating that recovery is both fragile and patchy.
“What we don’t need is for mortgage holders under stress to be pushed into
selling by an interest rate hike.
“In addition, we need to continue encouraging investment in the new building
sector so that we can continue to keep pace with demand for new housing as
populations increase.
“For the Reserve Bank to act now in this climate and increase interest rates
would significantly hamper the tentative recovery we are seeing in the property
sector”, said Mr. Martin.
Please direct media enquiries to Julian Brophy on 0408 276 749.
NEWS 
