Building approval slump threatens 'tepid' housing recovery

Newly released ABS building approval data shows private sector house approvals rose once more in June



The total number of private sector house approvals rose 1% in trend terms in June, according to ABS building approval data released yesterday afternoon, but Master Builders Australia (MBA) say the numbers are ‘disappointing’ and put into question the strength of the recovery in the residential building sector.

"Today's numbers are a bitter pill for an anxious residential building industry awaiting a recovery," says MBA chief economist, Peter Jones.

"This is a disappointing result that threatens what has been a tepid upturn to date. The only silver lining for the residential building industry is a positive trend in house approvals despite the fall back in June."

"The figures for June 2013 released by the Australian Bureau of Statistics shows the total number of dwellings approved seasonally adjusted fell 6.9%, with private sector houses falling 1.2% and 'other dwellings' including units, townhouses and apartments falling 12.6%.

State by state, dwelling approvals increased in June in the ACT (2.7%), WA (1.8%), NSW (1%), TAS (0.9%), SA (0.8%) and QLD (0.1%), but decreased in the NT (-10.9%) and VIC (-1.2%) in trend terms.

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