Surprise fall in building approvals
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.”