Media Release
4
February 2010
APPROVALS RECOVERY ON TRACK
Statement by Peter Jones, Chief Economist
A solid
increase in approvals in December
comes on top of a markedly higher
revised
figure for
November and is positive news for the housing recovery, according to Master Builders Australia,
the peak body for the building and construction industry.
Mr Peter Jones, Chief Economist,
said “A number of positives come out of today’s figures
including evidence that the Government’s social housing stimulus spending initiative is beginning
to bear fruit.”
“Public sector dwelling approvals, traditionally responsible for only three
per cent of the private
sector-dominated total market, have increased substantially in recent times as
government stimulus
spending works to lift public dwelling approvals to an annualised 14,000 dwellings.”
He said, “This is good news for the housing recovery, particularly as the ending of the First Home
Owner ‘boost’ can be expected to see some reversal of the pull-forward in demand associated with
the scheme.”
“Although its too early to say whether there has been any relaxation of the credit crunch, more good
news was the consolidation of last month’s big increase in ‘other dwellings’ approvals, with signs
they may be beginning to improve on current low levels.”
“The big question now is whether a strengthening trend in approvals growth can overcome the new
test of higher interest rates with the first hurdle the impact of three consecutive hikes late last year.”
The total number of dwelling units approved, seasonally adjusted, rose
by 2.2
per cent to
14,869 in December, to be up by 53.3 per cent on the same month in the previous year.
Private sector house approvals rose
by 3.1 per cent to
9,682
to be up 39.5
per cent on the
same month last year.
The more volatile private sector ‘other dwellings’ (apartments and townhouses), rose by 9.1
per cent in December to be 56.9 per cent higher than in December 2008.
Public sector dwelling units
fell by 19.4 per cent in December, to be 385.8 per cent higher
than the same month last year.
The value of non-residential building
approvals, seasonally adjusted, fell by 9.4 per cent in
December, but from a high base due to the Government’s stimulus spending.
For further information: Peter Jones, Chief Economist, Mobile 0403 440 838
NEWS 
