Buildings approvals shrink again in December

Peter Terlato 2 February 2017 NEWS

unhappy construction home

But rises were recorded in Tasmania, Victoria and the NT.

The total number of national dwelling approvals fell 2.5% in December 2016, the seventh consecutive month of decline, according to the latest data.

The Australian Bureau of Statistics (ABS) reports building approvals decreased in NSW (-6.3%), Queensland (-5%), ACT (-2%), South Australia (-1.3%) and Western Australia (0.3%).

However, approvals rose in Tasmania (3.8%), Victoria (1.5%) and the Northern Territory (1.4%).

The ongoing recession in dwelling approvals matched a slight drop in approvals for private sector houses, down 0.4% month-on-month in December.

The value of total buildings approved fell 3.5% in December, the fifth consecutive month of decline.

Residential building values fell 2.4% in December, while non-residential values fell 5.6% month-on-month.

New research suggests house prices will keep rising throughout 2017 before grinding to a halt in 2018.

To capitalise, Aussie banks kicked off the year by hiking variable home loan rates.

Property prices keep rising in Australia’s capitals, which is great for investors, bad for first home buyers.

Buying a home or investment property? It pays to compare and research your finance options.

Latest home loans headlines

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