Commentary
12:33 PM, 5 May 2009
Adam Carr
SCOREBOARD: Housing recovery
Australian building approvals rose by 3.8 per cent in March, following an upwardly revised 8 per cent increase in February. Annually, approvals are down 16.5 per cent from -25 per cent last month.
The rise in total approvals reflected a 2.7 per cent increase in private house approvals (after a rise of 0.7 per cent last month) and a 2.8 per cent increase in approvals for apartments, following a 32 per cent increase in February.
On a state basis, approvals were up in Victoria (15 per cent), Queensland (7 per cent), and South Australia (5 per cent). They fell in the other states but this typically followed strong gains i.e. in New South Wales approvals were down 7 per cent after a February gain of 18 per cent.
A great outcome which I think confirms the recovery in housing is underway. It’s particularly positive that gains in approvals were evenly split between houses and apartments – even after a 30 per cent odd lift in apartment approvals the previous month.
Looking forward, I think it is reasonable to expect, with interest rates at historically low levels, an ongoing rapid increase in approvals.