Fall in approvals not enough to shake home builders
THE home building industry remains confident activity will remain stable, despite a 5% fall in building approvals in June.
Figures out from the ABS today showed the seventh decline in approvals of the past nine months, despite record low interest rates.
The fall was biggest in Queensland, which took a 10.5% hit in approvals of dwellings in June, after a massive 50% rise in May this year.
Master Builders' chief executive Wilhelm Harnisch said it pointed towards continued growth, but "likely to be at a slower rate".
But the Housing Industry Association's senior economist Shane Garrett said despite an inadequate housing supply, land release policies and "barriers to development" were slowing the sector.
"With interest rates at historic lows, the window of opportunity remains open for the supply of affordable housing to be significantly augmented in the near future," he said.
"A greater push on this front by policymakers could ensure that the housing prospects for this generation of Australians are greatly enhanced."