WA building approvals surge 21% in June

Thursday, 30 July, 2009 - 10:53
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Building approvals in Western Australia have jumped more than 21 per cent in June as the nation posts its biggest surge in four years thanks to a flurry of new apartment projects, official data shows.

National approvals climbed by 9.3 per cent in June, outperforming market forecasts of an eight per cent increase.

The monthly jump was the biggest since May 2005, and coincided with a 27.7 per cent surge in approvals for apartments, a volatile sector.

But the latest improvements follow an 11 per cent decline in May, which was the biggest monthly drop since November 2002.

The latest tally of 11,086 dwelling approvals is lower than in April.

Approvals for detached housing numbers rose by 4.9 per cent in June.

On an annual basis, overall building approvals are down 14.3 per cent.

Apartment building approvals are also 45.7 per cent weaker compared with a year earlier.

The resources state of Western Australia enjoyed the strongest resurgence in building approvals in June, posting a 21.1 per cent increase.

Construction activity was also more robust in Victoria, where approvals rose by 17.4 per cent, followed by an 11.3 per cent increase in South Australia.

NSW had a more modest recovery of 3.4 per cent.

Building approvals went backwards in Tasmania, shrinking by 7.6 per cent, and Queensland, which suffered a 1.9 per cent decline.