Fall in building approvals is a warning

The fall in building approvals revealed in the latest ABS data released today is a warning sign for governments to accelerate policy solutions to fix housing markets.

The Property Council's Chief of Policy and Housing Glenn Byres said the new data showed a drop of 8.7 percent in September.

“The fact is we keep seeing signs of sliding approvals at a time when we need new stock to help fix the affordability woes facing homebuyers," said Mr Byres.

"We're pleased to see the Commonwealth flag its intentions to use an incentive based system to get the states to transform planning systems and supply.

"But we need the states to seize the opportunity and get on the job of removing barriers that add to the time, cost and red tape facing projects.

“It is also telling that the three eastern seaboard states have suffered drops in approvals after unveiling new taxes on foreign investment.

"Queensland and Victoria at least showed some sense in creating exemptions for investment in new housing. Sadly, Mike Baird has failed to understand basic market dynamics and should do the same.”

Media contact:  Paul Ritchie |  E pritchie@propertycouncil.com.au