Media Release
30 September 2009
MIXED APPROVALS DATA
Statement by Peter Jones, Chief Economist
ABS approvals data for July produced mixed results, with an increase in house
approvals, another
decline in unit and townhouse developments, and extreme variations by non-dwelling sector,
according to Master Builders Australia, the peak body for the building and construction industry.
Mr Peter Jones, Chief Economist, said “On the dwelling side, the latest figures are a mixed bag,
with
further evidence that the supply of houses is beginning to respond to the pick up in demand,
but with investor-driven approvals of units and apartments remaining in the doldrums.
“The fall in unit and apartment approvals suggests that part of the supply chain has yet to overcome
strong negative forces that have developed over the past 12 months.
“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,
so
critical
to a sustainable
economic downturn,
is by no means a
foregone conclusion, with
the looming fall back associated with the end of the First Home Owner
‘boost’ scheme another hurdle to overcome.
“Non-residential building data reveal extreme differences by sector, with approvals in the 3 months
to August for the education sector up a staggering 640 per cent on the corresponding 3 months last
year, as the Government’s BER stimulus program ramps up,
but
in stark contrast to
the ailing
commercial building sector which is down by more than half over the same period.
“Although non-residential approvals are down 22 per cent year-on-year, Master Builders believes
the Government’s stimulus measures will help maintain 50,000 jobs that would otherwise have
been lost.”
“Ultimately, the economy needs the private sector to drive a resumption in sustainable growth and
any pre-emptive rise in interest rates by the Reserve Bank would threaten a still vulnerable
economy.”
The total number of dwelling units approved, seasonally adjusted, fell
by 0.1 per cent to
12,126 in August, to be unchanged on the same month in the previous year.
Private sector house approvals rose
by 3.1
per cent to
8,880
to be up 10.8
per cent on the
same month last year. The more volatile private sector ‘other dwellings’ (apartments and
townhouses), fell by 11.7 per cent in August to be 32.3 per cent lower than in August 2008.
The value of non-residential building approvals, seasonally adjusted, rose by 68.7 per cent in
August, and is up 40.2 per cent on August 2008.
For further information: Peter Jones, Chief Economist, Mobile 0403 440 838
NEWS 
