Building approvals increased for the second consecutive month in March, according to the Housing Industry Association. Approvals jumped by 3.5 percent
Building approvals increased for the second consecutive month in March, according to the Housing Industry Association.
Approvals jumped by 3.5 percent in March, due to a 3.4 percent rise in detached house approvals, and a 4 percent lift in non-house buildings.
HIA Chief Economist Harley Dale says the turnaround in approvals highlights the success of key government policies such as the first home owners grant.
“Evidence has emerged over 2009 to date of a recovery in a range of leading housing indicators, albeit a recovery of modest proportions in the case of building approvals,” he says.
“This evidence proves the worth of continuing to look at policies to stimulate the residential sector as clearly such policies have a positive impact on construction, employment, and on the demand for manufactured products.”
The number of seasonally-adjusted Queensland residential dwelling approvals increased by 7 percent in March.
This result is second to Victoria at 15 percent.
“Approvals were still down in the March 2009 quarter (-26 per cent on the March 2008 quarter) on account of the investor and trade-up buyer markets,” Dale says.
The first home owners grant is set to be axed on June 30, although a possible extension will be revealed with next week’s Budget.