Building Approvals at Near Record Lows
04 June 2012
March 2012 Building Approval Figures bring no joy to the Building and Construction sector.
Building Approvals at Near Record Lows
Today’s release of the Australian Bureau of Statistics building approval figures for March have brought no joy to the building and construction sector according to Master Builders Tasmania, the peak employer body representing the building and construction industry.
Mr Kerschbaum, MBT’s Executive Director said, “Residential approvals are now languishing at 9 year lows. Based on current approvals, residential construction will struggle to get to 2400 approvals for the current financial year, which is 25% down from last financial year. The industry requires some momentum or else we will see wholesale job losses in the sector. Today’s approval figure of 169 dwelling units is well down on where it should be and reflects 6 months of low approval figures in a row. The low approval figures are no longer a statistical blip; they are symptomatic of a lack of confidence in the Tasmanian economy.”
Mr Kerschbaum continued, “Unfortunately the news on the non-residential front is no better with that sector recording an abysmal $13.9 million in approvals for March. The lack of investor confidence is a major concern. A recent Master Builders Survey showed that business conditions are deteriorating, profitability is under pressure and the pipeline of building work is evaporating. In short, there were very few positives to come out of the survey.”
Mr Kerschbaum concluded, “The decision by the Reserve Bank to cut interest rates by 0.5% last week could not have come at a better time, however the latest gloomy data highlights the need for urgent reform in the areas of costs, regulatory red tape and microeconomic reform at the state and local level.”
For further comment contact Michael Kerschbaum (w) 6234 3810 or (m) 0438 343 810
