Tasmania - January Building Approvals Abate

03 March 2015

Building approval figures coming "off the boil"

Statement by Mr Michael Kerschbaum, Executive Director

Master Builders Tasmania (MBT), the peak employer body representing the building and construction industry, believes that the latest building approval figures for January demonstrate that the dwelling approvals are coming off the boil after a number of months of very positive approval figures.

Mr Michael Kerschbaum, MBT’s Executive Director said, “The January building approval figures, released today by the Australian Bureau of Statistics, clearly shows the impact of the First Home Builders Boost (FHBB) is abating. While we expect the figures to remain above normal for the next few months as the effects of the FHBB wash through, the January figures indicate that dwelling approvals have peaked. January recorded only 162 approvals, a sharp decline on previous months. Because this is the first hint of a downturn, the figures are down by 9.3% in seasonally adjusted terms but still up by 1.6% in trend terms. As to whether the trend figure turns negative or not will depend upon the February and March figures.”

Mr Kerschbaum added, “On the non-residential side, the approval figures were quite weak, with only $21.1 million worth of work approved. Again, being such a short month, MBT is not overly concerned with the figure and will wait for a few more months to see if the approvals pick-up as expected.”

Mr M Kerschbaum concluded “It will be interesting to see how the next few months’ dwelling approvals figures pan out now that the $30,000 FHBB has been reduced to $20,000.”

For further comment contact Michael Kerschbaum on 6210 2000 or 0438 343 810

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