Units and BER Assist March Approvals
05 May 2010
The March ABS building approval figures show a spike in unit developments and educational work will keep the industry buoyant for the remainder of the year, according to Master Builders Tasmania, the peak employer body representing the building and construction industry.
The March ABS building approval figures show a spike in unit developments and educational work will keep the industry buoyant for the remainder of the year, according to Master Builders Tasmania, the peak employer body representing the building and construction industry.
Mr Kerschbaum said, “In original terms, residential approvals have jumped substantially to record 281 for the month of March, 17.1% up on the previous month. However in trend terms, Tasmania has now recorded 5 months of negative results (down 2.5% for March). This downturn was expected as a result of higher interest rates, the withdrawal of the federal government’s first home owner boost scheme and tighter lending requirements. One concerning trend is that approvals for private sector houses fell to 189, the second lowest figure in over a year. The low private sector figure was underpinned by a lift in other dwelling approvals which includes “villa” units, apartments and conversions. The spike in unit approvals probably reflects the Federal Government’s Social Housing stimulus funding which is still coming through the system.”
Mr Kerschbaum added, “Non-residential approvals have bounced back in March recording $71.2 million worth of approvals, up over 40% on the average monthly figure. Interestingly, $44.6 million of that amount was educational establishments, reflecting the remainder of the last stage of the Building the Education Revolution initiative.”
Mr Kerschbaum concluded, “The good approval figures for March will ensure that the remainder of 2010 will see high levels of activity, however there is a concern that private sector investment is now falling away. With housing affordability levels falling, interest rates rising, a tight credit market and the last of the stimulus money washing through the approval figures, the forward indicators all point to lower levels of activity next year.”
Statement by Mr Michael Kerschbaum, Executive Director
For further comment contact Michael Kerschbaum (w) 6234 3810 or (m) 0438 343 810
