Building approvals climb once more

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Building approvals climb once more

Building approvals are climbing once again despite showing signs of moderating last month, according to the latest ABS data released today. 

Although in trend terms approvals continued their five month decline, seasonally adjusted figures from the ABS Building Approvals for July showed a 4.2 per cent increase on the previous month up to 19,298. 

Year on year the number of new dwellings approved has increased 13.7 per cent. The 12 months to July 2015 recorded 224,121 new dwelling approvals in seasonally adjusted terms. This is up from 197,193 approvals for the same 12 month period to July 2014. 

The Property Council of Australia’s Executive Director Residential Nick Proud believes the supply pipeline bears close monitoring. 

“The data last month suggested approvals may have peaked and the market was slowing down. These latest figures suggest a small rebound and provide reassurance for the supply of new housing – particularly in Sydney and Melbourne,” Mr Proud said. 

“Maintaining a high level of new supply is critically important to improve housing affordability and these indicators bear close monitoring. 

“We have seen fluctuations in a range of relevant data. Buildings approvals act as an early warning system – given the lag between approvals and completions any drop off will be magnified when it comes to handing over the keys to new homes.”