Building activity remains high
30 September 2008
Statement by Mr. Chris Atkins, Executive Director, Master Builders Tasmania
ABS statistics reveal that Tasmanian building approvals were issued for 249 new dwellings in August 2008. Despite being lower than the previous month, the renovation market and commercial construction sectors continue to show that these sectors are underpinned by strong, long term demand, according to Master Builders Tasmania, the peak employer body representing the building and construction industry.
Mr Chris Atkins, Executive Director said, “August dwelling approvals, as expected, fell by 35.2 percent over the previous month, due to the July figures being significantly distorted as a result of building applications being held over from June due to the pending removal of Housing Indemnity Insurance. Despite this fall there is cause for optimism as the Rudd Government’s response to the housing affordability crisis may shortly result in around 280 new homes being commenced in Tasmania under the national rental affordability scheme (NRAS).”
Mr. Atkins continued, “A further interest rate cut this week by the RBA together with a high level of demand being unmet by the market will combine to ensure future housing demand remains strong in Tasmania and continue to defy the National, downward trend. A real bright spot for the Tasmanian economy is the level of commercial construction activity. This month $27.5 million of work was approved and there are a number of significant projects in the wings yet to receive approval. Labour shortages will continue as a major constraint to resourcing the construction of projects.”
C. Atkins
Executive Director
For further details contact: Chris Atkins (03) 6234 3810 Mob. 0438 623 438
