August 31, 2010Queensland’s total number of dwelling approvals declined by 18.3 percent in July; raising doubts over whether the first stage recovery in housing starts will gather traction next year.
ABS figures out today shows Australia achieved a modest 2.3 percent increase in building approvals (seasonally adjusted).
This was buoyed by increases in New South Wales (9.7 percent), Victoria (12.1 percent), South Australia (8.3 percent) and Tasmania (4.4 percent).
Private sector houses approved fell 0.1 percent due to falls in New South Wales (-5.3 percent) and Western Australia (-14.4 percent).
Queensland (3.2 percent), Victoria (6.9 percent) and South Australia (4.8 percent) all rose.
The value of total building approved fell by 1.3 percent in July in seasonally adjusted terms.
The value of total residential building rose by 6.6 percent while non-residential building fell by 15.8 percent.
‘PATCHY RESULT’: HIAHousing Industry Association (HIA) Chief Economist Dr Harley Dale warns the on-going downward trend for building approvals indicates the housing market may remain slow come the New Year.
“That lack of a sustainable recovery reflects higher interest rates, the unwinding of fiscal stimulus, and the considerable supply side obstacles to new housing which include a dire lack of available finance,” Dale says.
“The weak profile for leading housing indicators over 2010 to date supports the case for steady interest rates. It also highlights the need for a re-doubling of efforts to reduce the impact of regulation, development charging, and excessive taxation on the cost of new housing supply,” he says.
“A new Federal government needs to commit to housing policy priorities regarding a cost reduction program for new housing, the establishment of a housing and development ministry, and recognition and support for small business.”
