With building approvals falling to their lowest level in nearly three years, concerns are being raised that new housing levels could be heading for GFC lows.
According to recently released figures from the ABS, seasonally adjusted dwelling approvals fell by 7.8% in February. New South Wales saw the biggest fall (-41.2%) but rises were seen in Queensland (13.0%), South Australia (10.1%), Tasmania (10.0%), Western Australia (5.7%) and Victoria (1.1%) in seasonally adjusted terms.
Nevertheless, the Housing Industry Association (HIA) has been quick to point out that building approvals have fallen to their lowest level in nearly three years (since March 2009), and has raised the concern that building approvals “will again plumb the depths experienced around the GFC”.
“Today’s building approvals outcome is, quite frankly, woeful, even allowing for New South Wales virtually driving the entire fall. It is difficult to be positive about the short term prospects for new housing when a 7.8% decline in building approvals in February 2012 takes them to their lowest level since March 2009," said HIA chief economist Harley Dale.
"Furthermore, the level of approvals over the three months to February implies annual housing starts hitting a level lower than the GFC trough of 2008/09."
What do falling building approvals mean for Australia’s property market? Have your say on our property investment forum.
Australia’s population growth hotspots
Cheap high-growth, low risk suburbs
The suburbs where nobody wants to sell
Can you afford to buy in this suburb? Find out how much you can borrow
Top Suburbs :
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out