Residential building approvals fell again in December, according to the Australian Bureau of Statistics figures.
While the number of dwellings approved fell 1.0 per cent in December 2011, it was following a rise of 10.1 per cent in November.
However the trend estimate for dwelling approvals has now been falling for 14 months and for non-residential building approvals 12 months.
Dwelling approvals decreased for the month of December in:
- Victoria (-16.7 per cent)
- South Australia (-9.1 per cent)
- New South Wales (-5.0 per cent).
Meanwhile, they rose in:
- Queensland (24.6 per cent)
- Tasmania (15.6 per cent)
- Western Australia (6.0 per cent)
In seasonally adjusted terms, approvals for private sector houses rose 0.2 per cent in December with rises in Western Australia (6.3 per cent) and Queensland (4.7 per cent), while South Australia (-8.3 per cent), New South Wales (-3.7 per cent) and Victoria (-3.4 per cent) fell.
The value of total building approved increased 1.9 per cent in December following a decrease of 0.5 per cent in November. The value of residential building increased 1.0 per cent while non-residential building rose 3.3 per cent.
Master Builders Australia chief economist Peter Jones said 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.”
“Builders are reporting falling sales and forward orders as consumer caution, European economic woes and difficulties accessing finance work against any recovery,” he said.
He said lower interest rates are needed to underpin declining activity.
“Master Builders urges the banks to pass on any forthcoming rate cuts despite their concerns regarding cost of funds associated with European sovereign debt problems.”
He said, “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.”
