SA building approvals remain below average

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SA building approvals remain below average

Despite record-breaking national building approvals, South Australia remained at below average levels for the past 12 months according to ABS data released today.

The peak body for Australia’s $680 billion property industry said South Australia’s results suggest some cause for concern in terms of longer-term residential activity and jobs.

“South Australia has recorded below average approvals for the 12 month period to May 2015 and has hit the second lowest monthly approval recorded in 25 months,” said the Property Council’s South Australian Executive Director Daniel Gannon.

“Today’s ABS Building Approvals data shows a decline with 10,937 new dwellings approved in seasonally adjusted terms for the 12 months to May 2015, down 1 per cent from 11,071 approvals for the 12 months to May 2014.

“In a worrying sign for the industry, building approvals declined by 10 per cent on the April 2015 figure to record just 763 approvals for the month.

“In fact, the May 2015 results were also 18 per cent down on the approvals recorded for May 2014.” Mr Gannon said South Australia’s building approvals data is in stark contrast to the national scenario.

“From a national perspective, building approvals continue their unbroken upward trajectory, hitting new records over the past 12 months,” he said.

“Nationally, the latest ABS Building Approvals data shows continued growth, with 218,442 new dwellings approved in seasonally adjusted terms for the 12 months to May 2015, up from 192,561 approvals for the 12-month period to May 2014.

“While the national story is the best possible news for combating the challenge of housing affordability, it’s a slightly different story here in South Australia.

“We need stimulation here in this state, along with a boost to confidence – and that starts with reform.

“That’s why stamp duty abolition must be extended from the commercial market to residential, which would send a strong message to both the industry and home-buyers.”