Building approvals increase nationally during May

By the resi financial blog team, 21 October 2013

Building approvals in Australia up in May

If you're currently thinking of buying a brand new home with a first home loan, or building one, then you're likely to be one of many in the country, as new information has shown building approvals are on the rise.

According to data from the Australian Bureau of Statistics, the total number of private sector dwelling approvals rose by 1.5 per cent in trend terms across the country during May.

This is in addition to the one per cent increase in the number of dwelling units approved for the month.

These increases are a positive result for the real estate sector, as they may be an indication that consumer confidence is returning to the market.

An increase in building approvals may also signal that first home buyer incentives put in place by state governments might be working.

Looking at geographical results, it can be seen that Australian Capital Territory, Tasmania and Western Australia were the leaders for dwelling approvals, reporting increases of 4.1 per cent, 3.6 per cent and 2.7 per cent respectively.

Victoria and New South Wales also saw improvement in dwelling approval numbers at 1.2 per cent and 0.8 per cent.

Commenting on the statistics, Master Builders Australia (MBA) chief economist Peter Jones stated that increases in private sector housing and dwelling units is positive news for the industry, however in order to stimulate more activity there needs to be further rate cuts from the Reserve Bank of Australia.

"After holding fire at their meeting this week, the Reserve Bank must consider further interest rate cuts to stimulate the industry they are hoping will fill the gap in the economy created by the peak in mining investment," said Mr Jones.

Is this your first home loan? For expert advice and assistance contact a resi loan specialist today.

Categories: Home Loans