10/03/2011 - 00:00

Building approvals slip: HIA

10/03/2011 - 00:00

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BUILDING approvals fell in Western Australia over January, but WA fared better than most of the rest of the nation, according to the Housing Industry Association.

Building approvals slip: HIA

BUILDING approvals fell in Western Australia over January, but WA fared better than most of the rest of the nation, according to the Housing Industry Association.

In WA, all residential building approvals fell 4.5 per cent to 1,733, while detached house approvals declined by 2.3 per cent, reversing the gain in December 2010.

Nationally, January approvals were down 24.8 per cent on the previous year, after falling 15.9 per cent in January.

The January 2011 fall in approvals across the nation more than reverses the increase of December 2010 and is driven by a 32.4 per cent fall in ‘other dwellings’ approvals. Approvals for houses were down by 3.3 per cent in January.

The January figure comprises falls in seasonally adjusted approvals in NSW (down by 12.1 per cent), Victoria (down by 9.5 per cent), Queensland (down by 29.9 per cent), South Australia (down by 20.9 per cent), WA (down by 4.6 per cent) and Tasmania (down by 34.9 per cent).

“Although approvals levels in January were down compared with December, against the backdrop of an alarming 15.9 per cent decline nationally, WA fared better than most,” HIA Western Australia executive director John Dastlik said.

“Unfortunately we are beginning to see the impact of the interest rate hikes in November 2010 flow into the pipeline of residential building work.

“Over the last three months we have seen approvals track at levels that provide for 21,400 dwellings to be commenced over the 12 month period.

“It would be fantastic if this level of building could be maintained, however, when you consider the inadequate supply of land, particularly at the lower end of the market, it is hard to see this happening.”

 

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