“While the jump in the July 2016 building approvals are welcome, caution needs to be exercised in interpreting the headline ‘surge’ in building approval numbers,” Wilhelm Harnisch CEO of Master Builders Australia said.
“It does not mean that the industry is on the cusp of another boom because the approvals will not necessarily translate into actual building activity over the next 3-12 months,” he said.
“Nevertheless the 11.3 per cent seasonally adjusted increase does demonstrate a high level of confidence by the industry in meeting the unmet demand,” Wilhelm Harnisch said.
“At this stage it is too early to tell whether the recent interest rate cut will unleash a further round of investor interest in the apartment market,” he said.
“The building approval surge in high rise apartments was most notable in the major eastern states, particularly in New South Wales,” Wilhelm Harnisch said.
“The number of approvals for stand-alone housing remained steady and is expected to do so for some time underpinned by the confidence generated by the recent cuts in interest rates,” Wilhelm Harnisch said.