Residential approvals hold up - Non-residential approvals volatile

04 December 2008

Today’s building approval figures boost the rosy Tasmanian outlook on the residential front, but highlights the volatility of the non-residential sector, according to Master Builders Tasmania, the peak employer body representing the building and construction industry.

Mr Christopher Atkins said, “The recent interest rate cuts have, in the main, been passed on to the residential sector, boosting the confidence of families building a new home or undertaking renovations and the like. Unfortunately the non-residential sector has not received the same benefits; businesses are still paying stubbornly high interest on their credit facilities, even where they are mortgage backed. This unequal treatment of the two sectors is of concern to the Association as business conditions are deteriorating and lower interest rates will assist businesses immensely.”

Mr. Atkins continued, “Residential approvals were the same as last month in original terms with 272 dwellings being approved in October. Alterations and additions were $13.0 million for the month of October, another sound result, confirming the strength of the domestic market in Tasmania. Nationally, residential building approvals, in trend terms have fallen month on month fir the last twelve months, highlighting the strength of the local industry.”

Mr Atkins concluded, “Non-residential approvals fell from a very high September figure of $88.3 million to only $26.7 million in October, well below the average of last twelve months of $40.5 million. Hopefully this won’t be a continuing trend and is not as a result of the fallout from the Global Financial Crisis. Fortunately, the amount of work in pipeline is at near record amounts and should act as a buffer to insulate the industry from a downturn, if it does arise.”

C. Atkins

Executive Director

For further details contact: Chris Atkins  (03) 6234 3810   Mob. 0438 623 438

» More Media Releases