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Residential construction remains firm - HIA



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Λ F O R I M M E D I A T E R E L E A S E

July 30, 1999

RESIDENTIAL CONSTRUCTION REMAINS FIRM - HIA

Australian building approvals rose yet again in June 1999 according to Australian Bureau of Statistics figures released today. A total of 13,772 approvals were recorded during the month of June, a rise of 6.9 per

cent in seasonally adjusted terms over May 1999.

The approval of multi-unit dwellings rose significantly by 30.4 per cent while private-sector houses fell by 1.5 per cent following the previous months rise in this series of over 13 per cent.

The regional differences continued with all States apart from Victoria and Tasmania recorded a monthly lift in seasonally adjusted dwelling approvals. New South Wales approvals rose by 7.0 per cent, OLD up 5.4 per cent, WA up 5.2 per cent and SA up 1.9 per cent.

In Victoria, building approvals fell by 9.0 per cent and in Tasmania, they were down by 2.0 per cent.

Australia’s peak building industry body HIA said that today’s overall rise further demonstrates the current strength of the housing industry thanks largely to favourable home-loan affordability, consumer confidence, and evidence of pre-GST buying decisions.

HIA's Managing Director, Dr Ron Silberberg welcomed today’s strong figures and said that with the eighth consecutive month of trend growth in the approval of private-sector houses, home builders will continue to remain busy through to the end of the year.

“Todays figures also enable us to compare how house construction has performed over the past two financial years” Dr Silberberg said

“A total of 154,542 building approvals were recorded in 1998/99 which is only down slightly on the previous year. Much of the fall is attributed to the softening in demand in Queensland over the year which fell by 20.2 per cent, while in Victoria, South Australia, and Western Australia they enjoyed growth of 9.0 per cent, 9.9 per cent, and 11.1 per cent

respectively.”

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Housing Industry Association Limited tBititttr^Xssociation Limited ACN No 004 631 752

RESIDENTIAL CONSTRUCTION REMAINS FIRM - HIA ..2

DWELLING APPROVALS - June 1999 Seasonally Adjusted (Number)

NSW VIC QLD SA WA TAS AUSTRALIA

Jun-99 4548 3225 2394 735 1998 98 13,772

May-99 4252 3544 2272 721 1899 100 12,881

Jun-98 5116 3275 2740 715 1757 123 14,247

% change Change on previous month 7.0 -9.0 5.4 1.9 5.2 -2.0 6.9

Change on same month a year ago -11.1 -1.5 -12.6 2.8 13.7 -20.3 -3.3

DW ELLING UNITS APPROVED, AUSTRALIA AND STATES Seasonally Adjusted (Number)

NSW VIC QLD SA WA TAS AUSTRALIA

3 months to June 99 13,065 10,457 6,877 2,052 5,623 320 39,113

3 months to March 99 12,689 10,285 7,255 1,974 5,037 356 38,807

3 months to June 98 14,325 10,043 8,987 1,868 5,087 383 41,471

% change Change on previous 3 months 3.0 1.7 -5.2 4.0 11.6 -10.1 0.8

Change on same 3 months a year ago -8.8 4.1 -23.5 9.9 10.5 -16.4 -5.7

Dwellings Approvals - Australia and States

1997/98 1998/99 Change

New South Wales 52,693 51,668 -1.9%

Victoria 36,438 39,704 9.0%

Queensland 36,479 29,110 -20.2%

South Australia 7,215 7,928 9.9%

Western Australia 18,460 20,506 11.1%

Tasmania 1,643 1,410 -14.2%

Northern Territory 2,218 2,176 -1.9%

Australian Capital Territory 1,396 2,040 46.1%

Australia 156,542 154,542 -1.3%

FURTHER INFORMATION: Please contact Simon Tennent, Senior Economic Analyst on (02) 6249 6366