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Building approvals keep falling



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29 September 1995

M E D I A R E L E A S E

MASTER BUILDERS

3rd Floor Construction House 217 Northbourne Ave. Turner, Canberra ACT 2601 Telephone: (06) 249 1433

Facsimile: (06) 249 1373

Building Approvals Keep Falling

Statement by Wilhelm Harnisch, National Director Economics & Housing

The sharp monthly fall o f 7.7 per cent (seasonally adjusted) was unexpected and would be o f considerable concern to the\ housing)sector if this rate o f decline continues in the following months. Such a rate o f decline would see a severe building slump with commencements falling as low as 122,000 for 1995-96, much lower than the 130,000 dwelling units currently forecast by the MBA.

The main contributing factor to the large fall in August was the 22.1 per cent decline in the number o f other residential dwelling units approved. The fall in private sector houses was 3.0 per cent.

Future prospects for employment in the housing sector are increasingly looking grim with losses o f up to 30,000 likely this financial year despite the offsetting employment opportunities provided by the projected upturn in the non-residential building sector.

Total building approvals (seasonally adjusted) decreased by 7.7 per cent in August to 10,373 and were 41.0 per cent lower than August 1994. For the three months to August approvals decreased by 10.9 per cent and were 33.1 per cent lower than the same period last year.

Private sector house approvals decreased by 3.0 per cent in August to 7,307 and were per cent lower than August 1994. For the three months to August approvals decreased by 5.7 per cent over the previous period and were down by 30.9 per cent for the same period last year.

Total private sector approvals decreased by 9.4 per cent to 9,654 and were 42.9 per cent lower than August 1994. For the three months to August approvals decreased by 11.6 per cent and were down by 34.1 per cent over the same period last year.

For further information contact:

Wilhelm Harnisch BH: (06) 249 1433 AH: (06)288 9650

Master Buil-tr

A R.B.N 008 383 45. Incorporated in South Australia with