Master Builders Australia Says Approvals Wane As Stimulus Fades

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31st March 2010, 04:12pm - Views: 584





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Media Release







31 March 2010


APPROVALS WANE AS STIMULUS FADES

Statement by Peter Jones, Chief Economist

A second consecutive fall

in dwelling approvals

and another big fall in non-residential building

approvals in February mark the end of the big upswing

in approvals caused by the Government’s

stimulus initiatives, according to Master Builders Australia, the peak body for the building and

construction industry.

Mr Peter Jones, Chief Economist, said “The end of the First Home Owner ‘boost’ is taking the wind

out of the sails of the housing recovery and the spike in non-residential approvals associated with

the school-building program is now over.”

He said, “The Government’s social housing stimulus spending is helping, but a sustained upturn in

residential building will require upgraders and investors to fill the gap left by first home buyers.”

“Commercial builders will

find it harder

to fill order books beyond the next 6 to 9 months as

the

education-related school building work begins to dry up.

“Master Builders urges the Reserve Bank to take a more cautious approach on interest rates to

ensure momentum is regained

in residential building and prevent a collapse in non-residential

building.”


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

by 3.3

per

cent to

13,929 in February, to be up by 34.2 per cent on the same month in the previous year.


Private sector house approvals fell

by 0.9

per cent to

9,711

to be up 33.3

per cent on the

same month last year. 


The more volatile private sector ‘other dwellings’ (apartments and townhouses), fell by 10.9

per cent in February to be down 4.9 per cent on February 2009.


Public sector dwelling units fell by 3.4 per cent in February, to be 496.1 per cent higher than

the same month last year.


The value of non-residential building approvals, seasonally adjusted, fell by 13.0 per cent in

February, as the previous impact of Government stimulus spending begins to wane.


For further information: Peter Jones, Chief Economist, Mobile 0403 440 838






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