Sur­prise fall in build­ing ap­provals

Townsville Bulletin - - NEWS -

BUILD­ING ap­provals have suf­fered their largest set­back since Septem­ber 2014 as the huge surge in high- den­sity dwellings eases.

Ap­provals for the con­struc­tion of new homes fell 8.2 per cent in June, way worse than mar­ket ex­pec­ta­tions of a 0.9 per cent fall. Over the 12 months to June, build­ing ap­provals were up 8.6 per cent, the Aus­tralian Bureau of Sta­tis­tics said yesterday.

Ap­provals for pri­vate sec­tor houses rose 4.3 per cent in the month, and the “other dwell- ings’’ cat­e­gory, which in­cludes apart­ment blocks and town­houses, was down 20.4 per cent.

JP Mor­gan economist Tom Kennedy said he didn’t ex­pect it to sig­nif­i­cantly strengthen again this year.

“It’s un­likely that you’ll see any fur­ther in­crease in ap­provals vol­umes, you’ll prob­a­bly see them hover around the cur­rent lev­els for a while,” he said.

“But there are dis­in­cen­tives for in­vestors, they will pull back and re­con­sider their op­tions.”

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