Approvals for detached houses sink to five year low

“Approvals for new detached houses across Australia are at their lowest ebb since late 2013,” according to Shane Garrett, Chief Economist of Master Builders Australia.

ABS figures which have just been released indicate that detached house approvals fell by 2.1 per cent during September to record their weakest monthly result since December 2013. There was better news for apartment and other dwelling approvals which benefited from a 10.7 per cent bounce during September.

“The descent to a five-year low for detached house approvals is an unwelcome milestone and reflects a number of unfavourable factors,” Shane Garret said.

“House prices are continuing to fall in Australia’s two largest markets and this makes it more difficult to deliver new housing supply. The results of last week’s MBA industry survey also demonstrated how the ongoing Royal Commission has led to tougher financing conditions in recent months,” he said.

“The unprecedented level of new home building over the past five years has substantially expanded the capacity of the Australian economy by boosting the number of construction jobs and allowing greater numbers of workers in all sectors to put a roof over their heads,” Shane Garrett said.

“With new home building activity starting to flag, it is vital that government policies remain focused on allowing our industry to provide enough new homes to meet our future demands,” Shane Garrett said.

During September 2018, approvals for new dwellings saw the largest increase in Victoria (+30.5 per cent), followed by Tasmania (+15.7 per cent) and South Australia (+7.8 per cent). The largest reduction in approvals hit Western Australia (-19.0 per cent), followed by Queensland (-10.5 per cent) and the ACT (-8.4 per cent). There were also fewer approvals in New South Wales (-6.8 per cent) and the NT (-6.9 per cent) during September 2018.

Article distributed by AAP Medianet

 

Metis builds capacity for professionals to:

Our clients include: 
AECOM, Jacobs, WSP, GHD, Laing O’Rourke, Fulton Hogan, Vision Australia, NSW Health Infrastructure, The City of Parramatta, The Department of Infrastructure and Regional Development, SMEC, Norman Disney and Young. Learn more. 
Our programs are:

Related Posts

  • CIMIC Group companies preferred to deliver Taswater's capital works

    Read More
  • The era of talking buildings has arrived

    Read More
  • The Digital Western Parkland City Event

    Read More
  • Hobart property price growth decelerates

    Read More
  • nChain Unveils Ground-breaking Metanet Project to Power the Internet on Bitcoin SV Blockchain

    Read More
  • Cybertongue to transform milk market and help lactose sufferers

    Read More
  • New solar farm to boost Wagga Wagga economy

    Read More
  • Policy and Legislation: Open Space and Parklands

    Read More
  • Sunshine Coast takes major step to IoT and smart cities future with Vertiv

    Read More
  • Unlocking the value – applying Early Contractor Involvement (ECI) to service contracts

    Read More