ABS Building Approvals show that the total number of private sector house approvals rose 1% in trend terms in June. Source: Timberbiz
This contributed to the 0.1% increase in the total number of dwelling units approved which was partially offset by a 1.5% decrease in private sector dwellings excluding houses.
Building approvals data for June 2013 highlight the continued vulnerability of residential construction activity, according to the Housing Industry Association.
“We had hoped that the fall in residential building approvals during May was a blip but today’s figures now show two consecutive quarters of decline.
“This means that the number of approvals is 13.0% lower than 12 months ago,” said HIA senior economist, Shane Garrett.
Dwelling approvals increased in June in the Australian Capital Territory (2.7%), Western Australia (1.8 per cent), New South Wales (1.0%), Tasmania (0.9%), South Australia (0.8%) and Queensland (0.1%) but decreased in the Northern Territory (-10.9%) and Victoria (-1.2%) in trend terms.
In trend terms, approvals for private sector houses increased for the sixth consecutive month in June.
Of the states and territories, South Australia (2.6%), Western Australia (1.5%), New South Wales (1.0%) Victoria (0.9%) and Queensland (0.6%) all experienced rises in private sector house approvals.
The trend value of total building approved fell 0.5% in June following rises in the previous 16 months. The value of residential building rose 0.4% while non-residential building fell 1.7%.
“Today’s figures from the ABS show particular weakness in the multi-unit segment of the market, with approvals declining by 15.2% in June to a level that is 36.1% lower than 12 months earlier, “ said Garrett.
“There had been some signs in earlier months that a housing recovery was underway but today’s figures put a large question mark over that.
“For some time, we have been calling for structural impediments on housing activity to be reduced, including the taxation burden, excessive planning barriers and regulatory costs.
“The forthcoming election provides a real opportunity for solutions to these issues to be advanced.”
