Media Release
31 August 2010
LIFT IN DWELLING APPROVALS
A CAUSE FOR CAUTIOUS OPTIMISM
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
NEWS 
