8/12/2019 June 2014 Building Approvals - National Media Release

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31 July 2014

New Home Approvals Ease back in JuneABS figures for residential building approvals declined in June following an increase during the previousmonth, said the Housing Industry Association (HIA), the voice of Australias residential building industry.

During June 2014, a total of 15,659 dwellings were approved, a 5 per cent decline on the previousmonth. However, approvals were 16.0 per cent higher than the same period twelve months ago. DuringJune, the number of private detached house approvals fell by 2.2 per cent with private multi-unitapprovals experiencing a decline of some 10.5 per cent.

New home approvals have recorded falls in seven of the past nine months, HIA Senior Economist,Shane Garrett pointed out. 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 Australias inadequate supply of housing, it appears that the usual suspects have brought theupturn in activity to a halt,. These include factors like slow land release and barriers to thedevelopment of residential land.

Last weeks HIA Building Better CitiesSummit explored issues around so-called NIMBY-ism and itseffects on development, added Shane Garrett. Unfortunately, it seems that this culture is catered fortoo much by aspects of the regulatory mechanisms for new housing.

With interest rates at historic lows, the window of opportunity remains open for the supply of affordablehousing to be significantly augmented in the near future, Shane Garrett indicated. A greater push onthis front by policymakers could ensure that the housing prospects for this generation of Australians are

greatly enhanced, concluded HIA Senior Economist, Shane Garrett.

There was considerable state-by-state variation in approvals during June. Victoria was the only state torecord an increase during June, with approvals rising by just 0.3 per cent during the month in seasonallyadjusted terms. The largest declines during the month occurred in Queensland (down 10.5 per cent) andTasmania (down 9.0 per cent). Lower activity also affected South Australia (down 3.6 per cent), Western

Australia (down 3.1 per cent) and New South Wales (down 2.1 per cent). In trend terms, approvals roseby 9.2 per cent in the Northern Territory but fell by some 15.2 per cent in the ACT.

For further information please contact:

Shane Garrett, Senior Economist 0416 633 261

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Monthly Building Approvals - AustraliaSource: ABS 8731

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