Victorian building approvals fall slightly
The latest ABS Building Approvals for Victoria were down 23.9 per cent in June 2015 in comparison to the previous month’s figure. For the 12 months to June 2015, 67,289 new dwellings were approved in seasonally adjusted terms. This was 22.2 per cent up from 55,086 approvals for the same 12 month period to June 2014.
The Property Council of Australia’s Victorian Executive Director Jennifer Cunich said “Supply continues on an annualised basis, however Victoria is following the national trend in the past month with a drop in approvals and the market is likely to be reacting to the new macroprudential restraints on investors that is the way banks are treating loans to landlords, in some instances these types of loans stopped altogether.
“With investment loans likely to be lower, the critical issue is to ensure as many approvals are converted to actual builds as possible to boost supply.
“Declining investor numbers and new taxes on foreign investment will impact on the number of approvals that progress to construction. It is vital that strong supply is maintained to moderate housing prices in Melbourne.
“Governments need to continue to focus on supply side efficiencies in land release, improvements to development assessment and reform of inefficient taxes such as stamp duty to support continued supply.”
National Summary Data
-ENDS-
Jennifer Cunich, Victorian Executive Director – 03 96 8300 |0411 118 099
Nicholas Proud, Residential Executive Director – 02 6276 3601 |0408 538 126