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Weak building approvals in July

Building approvals fell sharply in July 2012 due to a big decline in non-detached dwellings, new research has revealed.

According to data from the Australian Bureau of Statistics (ABS), building approvals fell 40.4 per cent in July.

That said, overall approvals for the three months to August are still up by 38.8 per cent thanks to very healthy months in May and June.

“Today’s building approvals release provides a weaker than expected update on new home building and the wider non-mining economy,” Housing Industry Association chief economist Harley Dale said.

“Building approvals for detached houses, semi-detached dwellings, and units of three storeys are still running at levels considerably lower to those evident in mid-2011.”

"There is therefore still no sign of a widespread recovery in new housing, and in its own right today’s approvals update takes us in the wrong direction.

“Indeed, the three new housing updates available to date for July all signal a further deterioration in new housing into 2012/13.

“HIA has long held the view that new housing activity will recover as we progress through 2012/13, but only very moderately unless governments lift their game and take action. To get even a mild (and therefore inadequate) recovery we need to see new housing updates far superior to those that have emerged so far in 2012.”

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