June bounce led by units

Townsville Bulletin - - NEWS -

BUILD­ING ap­provals bounced in June, led by a spike in ap­provals for apart­ment blocks, but econ­o­mists say hous­ing con­struc­tion con­tin­ues to grad­u­ally de­cline. Ap­provals for new homes jumped 10.9 per cent in June, well above the one per cent the mar­ket ex­pected.

Ap­provals for “other dwellings”, which in­cludes apart­ment blocks and town­houses, surged 20 per cent, and ap­provals for pri­vate sec­tor houses rose 3.4 per cent. June’s growth in ap­provals fol­lows sig­nif­i­cant falls in re­cent months and points to a grad­ual de­cline in hous­ing con­struc­tion, Com­mon­wealth Bank se­nior econ­o­mist Gareth Aird said.

Over the year to June, apart­ments and town­houses were down 6.6 per cent and houses up 1.4 per cent. GEN­WORTH Mort­gage In­sur­ance says delin­quen­cies are on the rise in Queens­land and Western Australia due to a slow­down in the re­sources sec­tor. The com­pany’s net profit in the six months to June dropped 35 per cent to $ 88.7 mil­lion, with chief ex­ec­u­tive Ge­or­gette Ni­cholas partly blam­ing ris­ing mort­gage delin­quen­cies in min­ing re­gions.

NSW and Vic­to­ria con­tinue to per­form strongly.

Gen­worth shares were lifted by a com­pany an­nounce­ment of a buy­back of up to $ 100 mil­lion of its shares, which rep­re­sents 6.5 per cent of the com­pany’s is­sued share cap­i­tal.

Ms Ni­cholas said the com­pany ex­pected its gross writ­ten premium in 2017 to be lower than in 2016, and net- earned premium to fall by up to 15 per cent.

WISE MOVE: Auswide’s lend­ing man­ager Der­rick Evans, man­ag­ing direc­tor Martin Bar­rett and Christy Horne, se­nior cus­tomer ser­vice. Pic­ture: SCOTT RAD­FORD- CHISHOLM

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