Media Release
6
January 2010
LIFT IN UNIT, APARTMENT APPROVALS
Statement by Peter Jones, Chief Economist
A big increase in unit and apartment approvals in November is encouraging, although extreme
volatility experienced in recent times means it is too early to say whether ‘other dwellings’ building
has begun to shake off the effects of the credit squeeze, according to Master Builders Australia, the
peak body for the building and construction industry.
Mr Peter Jones, Chief Economist. said “The positive headline figure masks the fact that previous
strength in the growth of new house approvals is now waning, and that volatility in ‘other
dwellings’ approvals is occurring around a disastrously low base.”
“He said investor-driven building of units and apartments continues to be affected by the credit
crunch with approvals running at an annualised 35,000 – still 40 per cent below the peak.”
“Despite today’s figures, the concern is that the fragile housing recovery is still very one-
dimensional, and remains hamstrung by tight lending requirements affecting investor-driven unit
and apartment builders.”
He said, “A housing recovery is by no means a foregone conclusion, particularly as the First Home
Owner ‘boost’ scheme phases out.
“The big question is whether a strengthening trend in unit approvals growth can overcome the
hurdle of higher interest rates.”
The total number of dwelling units approved, seasonally adjusted, rose by 5.9 per cent to
13,724 in November, to be up by 33.3 per cent on the same month in the previous year.
Private sector house approvals fell by 1.9 per cent to 9,386 to be up 32.8 per cent on the
same month last year.
The more volatile private sector ‘other dwellings’ (apartments and townhouses), rose by
27.5 per cent in November to be 17.3 per cent lower than in November 2008.
The value of non-residential building approvals, seasonally adjusted, rose by 52.8 per cent in
November as the benefit of the Government’s stimulus spending continues to be evidenced.
For further information: Peter Jones, Chief Economist, Mobile 0403 440 838
NEWS 
