Queensland building approvals improve in May
Published: 3 July 2012
The May 2012 Building Approvals figures released today by the Australian Bureau of Statistics showed a welcome rise, according to Master Builders, Queensland’s peak body for housing and construction.
The 12.3% rise in private sector house approvals in Queensland from 1,406 in April 2012 to 1,579 in May 2012 (seasonally adjusted) was particularly welcome after a fall of 11.6% last month. This rise also compared favourably at a national level, where private sector approvals increased by 8.7%. Total dwelling unit approvals in Queensland increased by 10.3%.
The results were extremely positive, particularly after last months’ disappointing drop; however, they must be tempered by the fact that the approval levels remain well below pre-GFC highs.
Last month’s figures came as a surprise, particularly given the two consecutive interest rate cuts in May and June and the sound position of Queensland’s economy with relatively low unemployment and population growth sitting at a moderate 1.7%.
The latest approvals are indicative that the Queensland housing sector is taking small but positive steps towards recovery; however, poor dwelling commencement figures for the March quarter complicate matters and mean the industry runs the risk that this financial year will finish up worse than the last.
Master Builders believes these results combine to confirm the need for further stimulus for the housing industry and lend weight to Master Builders call for state government and Reserve Bank of Australia (RBA) action.
Master Builders is calling on the state government to introduce measures in the September budget that will have a substantial positive impact on new housing activity and for the RBA to consider another rate cut when it meets again in August 2012.
Julie Russell, Manager – Corporate Affairs via email or phone (07) 3225 6436 or 0414 083 191.