The June figures for building approvals are not a cause for worry,
according to Master Builders Australia (MBA) .
Master Builders Australia CEO Wilhelm Harnisch believes that the underlying
strength in building approvals will continue and should help sustain growth in
residential building despite the five per cent seasonally adjusted fall in
building approvals for June.
He explains that it is important to look beyond the monthly volatility
in approvals for high-rise apartments, which saw a fall of 8.4 per cent
seasonally of approvals for apartments down from the strong 25 per cent seasonally
adjusted rise in May 2014. The softening of approvals for apartments is not
unexpected given the exceptionally strong growth in the first half of this year.
Wilhelm Harnisch observes that overall residential building approvals
will continue to improve but at a slower rate. Queensland, for instance recorded
a fall of 10.5 per cent seasonally adjusted in total dwellings approved in June
following a rise of nearly 50 per cent seasonally adjusted in May 2014.
He adds that approvals for detached housing are forecast to show
continued growth, attributed to the undersupply of housing and the low interest
rate outlook.
