Master Builders Australia - Approvals Recovery On Track

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4th February 2010, 11:29pm - Views: 590





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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






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