Media Release
3
August 2010
LATEST BUILDING APPROVALS CAST DOUBT ON
RESIDENTIAL BUILDING UPTURN,
COMMERCIAL BUILDING WEAKENS AS STIMULUS FADES
Statement by Peter Jones, Chief Economist
Another fall
in dwelling approvals in June is
further evidence of a faltering residential building
upturn, and notwithstanding a monthly rise, there has been a big decline in non-residential building
approvals as the boost from the Government’s economic stimulus ends, according to Master
Builders Australia, the peak body for the building and construction industry.
Mr Peter Jones, Chief Economist, said “The good news
is that a recovery in approvals of units and
apartments
may
be gaining momentum as investor-driven activity finally begins to shake off
lingering effects of the credit squeeze.”
He said, “The bad news
is that total dwelling approvals are running at an annualised rate of around
160,000, forty per cent below what is required to make inroads into Australia’s massive supply
shortage.”
“Government programs like the BER prevented
a total collapse in commercial or non-residential
building activity, but the spike in approvals has now reversed, shrinking
to around $20 billion
in
annualised terms, a decline in the order of 40 per cent from levels achieved in 2008.”
“Private sector commercial building activity remains
weak,
and Master Builders’ recent national
survey reveals that the industry is becoming increasingly concerned about prospects.”
He said “A period of interest rate
stability from the Reserve Bank is critical, not only to ensure a
sustainable upswing in residential building,
but in order to safeguard against any further ratchet
down in non-residential building activity.”
The total number of dwelling units approved, seasonally adjusted, fell
by 3.3
per cent to
13,267 in June, to be up by 13.2. per cent on the same month in the previous year.
Private sector house approvals fell by 2.5 per cent to 8,620 to be up 0.5 per cent on the same
month last year.
The more volatile private sector ‘other dwellings’ (apartments and townhouses), rose by 2.7
per cent in June to be up 57.6 per cent on June 2009.
The value of non-residential building approvals, seasonally adjusted, rose by 4.4 per cent in
June to be 39.8 per cent down on June 2009.
For further information:
Peter Jones, Chief Economist, Mobile: 0403 440 838
NEWS 
