The value of total buildings approved increased 52.7 per cent in January in seasonally adjusted terms, following an increase of 2.0 per cent in December, according to Australian Bureau of Statistics figures released this week.
The value of residential building increased 1.1 per cent while non-residential building rose 131.8 per cent.
Dwelling approvals increased for the month of January in New South Wales (37.6 per cent) and South Australia (6.9 per cent) but fell in Queensland (-22.1 per cent), Tasmania (-3.0 per cent), Victoria (-2.7 per cent) and Western Australia (-0.4 per cent) in seasonally adjusted terms.
Approvals for private sector houses fell 0.1 per cent in January with falls in Victoria (-6.7 per cent) and New South Wales (-3.5 per cent), while South Australia (10.5 per cent), Queensland (6.2 per cent) and Western Australia (2.9 per cent) all rose.
Master Builders Australia chief economist Peter Jones commented: “It seems the interest rate cuts late last year have yet to lift residential building onto a sustainable recovery path and Master Builders believes further RBA action is required to boost confidence and turn building activity around.”
“The current level of dwelling approvals is running at around 140,000 (annualised) which is approximately 30 per cent below what is needed to service current growth in population let alone beginning to eat into the housing shortage estimated by the Government’s own Housing Supply Council at more than 200,000 dwellings.”
“Master Builders believes the November and December rate cuts by themselves are not enough and the Reserve Bank should lower rates next week to help boost confidence and reignite activity in the building industry.”
