New housing cooling
The one-off jump in dwelling approvals recorded in August has been all but reversed in September, confirming that the new home building industry is cooling.
Figures released on Thursday by the Australian Bureau of Statistics showed a seaonally adjusted fall of 19.4 percent in the number of dwellings approved in September, with drops recorded across most states and territories and occurring for both detached house and multi-unit dwellings.
Ruth Morschel, the HIA ’s executive director of public housing says the correction puts housing back on track for a modest slowdown into 2003. “With the subdued global economic outlook and domestic growth forecasts being drought-affected, this slowing in the leading indicators of home building should see rates on hold,” she says. “This stable rate scenario will ensure that housing makes a positive contribution to growth and will assist in softening the landing next year.”
Source: Building Products News.
1-Nov-2002