Building approvals rebounded in November 2011 after recording their lowest level in 29 months in October 2011.
The latest ABS Building Approvals showed the number of dwellings approved rose 8.4 per cent in November 2011, following a fall of 10 per cent in October.
Total November approvals were down by 18.9 per cent on one year earlier.
Dwelling approvals increased for the month of November in Victoria (39.9 per cent), Queensland (6.6 per cent) and New South Wales (2.0 per cent) but fell in Western Australia (-16.9 per cent), Tasmania (-7.9 per cent) and South Australia (-1.9 per cent) in seasonally adjusted terms.
In seasonally adjusted terms, approvals for private sector houses rose 4.8 per cent in November with rises in Victoria (13.0 per cent), Queensland (10.8 per cent), South Australia (2.3 per cent) and New South Wales (0.3 per cent), while Western Australia fell (4.9 per cent).
The value of total building approved decreased 2.6 per cent in November in seasonally adjusted terms, following a decrease of 2.0 per cent in October. The value of residential building fell 2.7 per cent while non-residential building fell 2.5 per cent.
Housing Industry Association senior economist, Andrew Harvey, said: "At least today's approvals update is on the right side of zero growth, but the level of total approvals remains weak and serves to reinforce the need for further interest rate cuts in the first half of 2012.”
"Further rate cuts are absolutely essential to shore up homebuyer confidence in light of global economic conditions and to help ameliorate the effects of the increased consumer cautiousness that has pervaded the Australian economy since the GFC," said Harvey.
"Building approvals over the three months to November 2011 imply an annual level of housing starts of under 130,000. That is lower than the level reached in GFC-affected 2008/09 and strengthens the case for urgent government action in addition to further rate cuts," Harvey added.
Master Builders Australia has also called more rate cuts to turn building activity around.
Chief economist Peter Jones said: “With the number of dwelling approvals still down by nearly 20 per cent on a year ago, it remains to be seen whether this monthly bounce in approvals is anything other than of the ‘dead cat’ variety.”
“Driving the result in November was a partial reversal of recent declines in unit and apartment approvals as well as an encouraging lift in house approvals needed to combat a worrying trend decline that has set in over the past 18 months.”
He said, “The value of non-residential building approvals fell 2.5 per cent in November and in annualised terms approvals are down a whopping 35 per cent on stimulus program-assisted levels of a couple of years ago.”
“The latest building approval figures are in line with findings of the latest Master Builders’ national survey which reveals that industry profits are under pressure and jobs may go.”
Jones said, “Builders are reporting falling sales and forward orders as consumer caution, European economic woes and difficulties accessing finance work against any recovery.”
“With the immediate challenge to restore confidence and drive a private sector recovery, the building industry is banking on further rate cuts to help boost confidence and stabilise an uncertain market.”
