 Rise in number of new home loan approvals
A rise in housing approvals for the second consecutive month has pleased the construction and building industry.
New figures released by the Australian Bureau of Statistics show that housing approvals have risen across Australia, for the second month in a row.
Building approvals rose 3.5 per cent to 10,494 units in March, seasonally adjusted. Private sector house approvals increased by 2.8 per cent, up for the fourth consecutive month, while private sector apartments and townhouses rose by 2.8 per cent, a second consecutive rise.
Meanwhile, the federal minister for housing, Tanya Plibersek has welcomed the data, saying it is "pleasing"
“These figures show that the Rudd government's first home owners boost, combined with low interest rates, is having a positive effect on the housing market,” she said. By the end of February, more than 42,000 Australians had taken up the boost.
“As these increased dwelling approvals translate to additional building it will support jobs in the housing and construction industry,” Plibersek said.
The encouraging figures add weight to arguement that the first home owners boost should be kept beyond 30 June, particularly for new homes, Peter Jones, chief economist for Master Builders Australia (MBA), said.
While the pick up in approvals gives cause for optimism, residential building activity here and now is suffering “another ratchet down”, he said.
Another “big fall” in housing commencements is expected for the March quarter and only 130,000 starts are predicted for 2008/09, which is a 17 per cent decline on the previous year, he said. With this in mind, it would be “unwise” to end the boost scheme prematurely, Jones said.
Join the discussion on Building & Construction
|