Media Release
1 September 2009
WELCOME UPSWING IN DWELLING APPROVALS
Statement by Peter Jones, Chief Economist
A strong increase in dwelling approvals in July was on the back of an overdue
rise in
unit and
townhouse developments, according to Master Builders Australia, the peak body for the building
and construction industry.
Mr Peter Jones, Chief Economist, said “Low interest rates and the First Home Owner ‘boost’
scheme has undoubtedly lifted demand, with the latest approval figures providing further evidence
that supply is beginning to respond.
“The lift in unit and apartment approvals, although encouraging - particularly in New South Wales -
has yet to eliminate the negative trend that developed at the national level in the middle of last year.
“The housing recovery is still threatened by tight lending requirements enforced by the banks that is
affecting investor-driven unit and apartment builders, as well as
the looming fall back associated
with the end of the First Home Owner ‘boost’ scheme.”
He said, “A housing recovery, so critical if Australia is to pull out of the economic downturn,
is by
no means a foregone conclusion - current prospects for a sustained upturn remain fragile.
“The Reserve Bank needs to keep interest rates low for an extended period in order to ensure that a
recovery in the interest-rate-sensitive residential building sector becomes entrenched and is able to
help drive the Australian economy out of recession.”
The total number of dwelling units approved, seasonally adjusted, rose
by 7.7
per
cent to
12,048 in July, to be 3.9 per cent lower than the same month in the previous year.
Private sector house approvals rose
by 1.5
per cent to
8,515
to be up 4.7
per cent on the
same month last year. The more volatile private sector ‘other dwellings’ (apartments and
townhouses), rose by 35.3 per cent in July to be 26.2 per cent lower than in July 2008.
The value of non-residential building
approvals, seasonally adjusted, fell by 0.3 per cent in
July, but is still 8.7 per cent lower than in July 2008.
For further information: Peter Jones, Chief Economist, Mobile 0403 440 838
NEWS 
