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
NEWS 
