Jump in building approvals
Industry ‘very optimistic’ new home figures signal end to downturn
THE building sector is buoyed by new figures which show new housing numbers have jumped by nearly 15 per cent.
Master Builders’ analysis of Australian Bureau of Statistics’ figures show that 1217 new dwellings were approved in the 12 months to the end of October, up 157 or 14.8 per cent.
In October 155 homes were approved, a 49 per cent jump on September (104). In August 86 were approved and in July 110.
Master Builders regional manager Ron Bannah said it was a good sign.
“If you go back two years ago we were averaging 77 a month,” he said.
“Now we are well into the 100s.”
Mr Bannah said his annual Christmas smoko on Wednesday was attended by 74 industry representatives who were “beginning of the end”.
“They are a lot more confident than this time last year,” he said.
Master Builders policy and economics manager Dyan Johnson said hopefully it was “the beginning of the end of what has been a historic downturn for the region”.
“Feedback from our members shows that the region is beginning to recover a sense of optimism and the latest figures support that,” she said.
“North Queensland continues to trend downwards, while Far North Queensland is improving.”
Kenfrost Ltd general manager Adam Gowlett said the region was “still doing better than most and third or fourth best in the state depending on the day”.
“I think the numbers for Far North Queensland seem high, although there is a bit happening on the Tablelands and probably a little on the Cassowary Coast and Port Douglas that might bump our numbers despite Cairns not ‘feeling it’ is getting back towards longterm averages,” he said.
Herron Todd White research director Rick Carr said he was cautious about the latest figures.
“Building approvals have eased off over the last 12 months and have moved into decline in both actual trend and stylised (trend-in-the-
*Terms and conditions apply: go to www.cairnspost.com,au/competitions to view full terms and conditions. Entries open 5 am 7 December 2015 until 5 pm 14 December 2015. trend) terms,” he said in the latest CairnsWatch report.
“Building approvals have increased in stylised trend terms by 55 per cent in the three years from September 2012 to September 2015, but are down by 5.8 per cent over the latest 12 months,” he said.
“Nevertheless the expectation for the coming year is for building approvals to increase as economic confidence continues to improve.”