New home approvals ease in australia

Photo credit: 8LettersUK

The data shows residential building approvals declined in June 2014 following an increase during May.

A total of 15,659 dwellings were approved last month, 5 per cent down on the previous month. However, approvals were 16 per cent higher than the same period twelve months ago. During June, the number of private detached house approvals fell by 2.2 per cent with private multi-unit approvals experiencing a decline of some 10.5 per cent.

"New home approvals have recorded falls in seven of the past nine months,” comments Housing Industry Association Senior Economist.

Garrett added: "It is thus likely that we have already reached the peak in the home building recovery and that activity is likely to stabilise over the coming year.

"Despite Australia’s inadequate supply of housing, it appears that the ‘usual suspects’ have brought the upturn in activity to a halt. These include factors like slow land release and barriers to the development of residential land."

"With interest rates at historic lows," she continued, "the window of opportunity remains open for the supply of affordable housing to be significantly augmented in the near future.

"A greater push on this front by policymakers could ensure that the housing prospects for this generation of Australians are
greatly enhanced."