Housing boom on the floor
BUILDING approvals for new homes have fallen for the second time in three months, indicating a cooling down in Australia’s residential housing boom. Approvals for the construction of new homes fell 5.6 per cent in May, data from the Australian Bureau of Statistics showed yesterday.
Over the 12 months to May, building approvals were down 19.7 per cent. The decline was far higher than market expectations of a 1.3 per cent fall in May and a 14.1 per cent decline over the previous year.
CBA senior economist Gareth Aird said the numbers signalled a softening in the housing market.
“The data reaffirms our view that residential construction will be a drag on economic activity from the second half of 2017,” he said.