Big Fall In Dwelling Approvals

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2nd July 2008, 03:36pm - Views: 1055





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Media Release






2 July 2008 



BIG FALL IN DWELLING APPROVALS

Statement by Peter Jones, Chief Economist

Dwelling approvals suffered a big fall in April, reversing last month’s surprise increase,

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

industry. 

Mr Peter Jones, Chief Economist, said: “The recent spike in fuel prices coupled with higher

interest rates is affecting buyer behaviour and suppressing activity in the residential building

market 

“Housing will continue to suffer fallout as the lagged effect of

high interest rates and

declining consumer confidence flow through,” he said.

“Most of the major states are now facing negative trends in approvals of

houses, units,

alterations and additions as the industry suffers collateral damage in the fight against inflation.

“Even if recent signals from the Reserve Bank that interest rates are on hold prove accurate, it

will take time for consumer sentiment to turnaround and underpin the strong and sustained

recovery needed to alleviate what has become a chronic shortage of housing,” Mr Jones said.

The total number of dwelling units approved, seasonally adjusted, fell by 6.5 per cent to

12,438 units in May, to be 0.2 per cent higher than the same month in the previous year.

Private sector house approvals

fell by 1.2 per cent to 8,729, to be up 1.7 per cent on the same

month last year.

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

by 18.2 per cent in May, to be 4.2 per cent lower than in May 2007.


For further information contact:

Peter Jones, Chief Economist Work 02 6202 8888, Mobile 0403 440 838







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