Master Builders Australia - Lift In Dwelling Approvals - A Cause For Cautious Optimism 1

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31st August 2010, 03:10pm - Views: 932

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Media Release

31 August 2010



Statement by Peter Jones, Chief Economist

A rise

in dwelling approvals in July provides a cause for cautious optimism that the faltering

residential building upturn can regain momentum, according to Master Builders Australia, the peak

body for the building and construction industry.

Mr Peter Jones, Chief Economist,

said “Indications

of a turnaround in house approvals,

despite a

flat result

in July, is encouraging although

it is too early to tell whether it will translate into a

sustainable bounce-back following

the recent set back experienced in the wake of the

end of the

‘boost’ scheme and higher interest rates.”

He said, “The recovery in approvals of units and apartments may be gaining momentum as investor-

driven activity attempts to shake off ongoing effects of the credit squeeze.”

He said, “The latest data may

mark the beginning of a much-needed ‘second wind’ for the

residential building recovery, given 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.”

He said “An extended period of interest rate stability from the Reserve Bank is critical if there is to

be a much-needed long and strong upswing in residential building.” 

The total number of dwelling units approved, seasonally adjusted, rose

by 2.3

per cent to

13,732 in July, to be up by 11.0. per cent on the same month in the previous year.

Private sector house approvals fell by 0.1 per cent to 8,624 to be down 0.8 per cent on the

same month last year. 

The more volatile private sector ‘other dwellings’ (apartments and townhouses), rose by 7.7

per cent in June to be up 38.0 per cent on July 2009.

The value of non-residential building approvals, seasonally adjusted, fell by 15.8 per cent in

July to be 47.3 per cent down on July 2009.

For further information:

Peter Jones, Chief Economist, Mobile: 0403 440 838

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