APPROVALS for the construction of new homes rose 11.4 per cent across Australia in October, official figures show.
Local councils approved the construction of 17,062 new homes, including houses, townhouses and apartments in multi-unit buildings, in October.
The stronger-than-expected building approvals figures gave the Australian dollar a boost.
The local currency hit US85.01c as the data was released at 11:30am (AEDT), up from US84.88c just before. Over the 12 months to October, building approvals were up 2.5 per cent, the Australian Bureau of Statistics said today.
Economists expected approvals to have risen 5 per cent in October.
Approvals for private sector houses fell 0.2 per cent in the month, and the “other dwellings” category, which includes apartment blocks and townhouses, was up 31.3 per cent.
The supply of housing would continue to rise, which will slow house price rises, St George senior economist Hans Kunnen said.
“The basic story is that building approvals are well above their 10-year average, that tells us that construction work going into 2015 will remain firm,” he said.
“It adds to the supply of housing so for those who are worried about house prices it is helpful.” Mr Kunnen also expects national housing price rises to slow in the short term.
“If you’re looking at it from a Sydney perspective they are not likely to decline in the near term, but on a national perspective, possibly,” he said.
“Because of the low interest rates, the population growth and the overall undersupply of housing, actual declines in housing prices on a year-on-year basis will be harder to achieve.”
This news story is reprinted from www.theaustralian.com.au
Read more details on Financial Outsourcing Services
Local councils approved the construction of 17,062 new homes, including houses, townhouses and apartments in multi-unit buildings, in October.
The stronger-than-expected building approvals figures gave the Australian dollar a boost.
The local currency hit US85.01c as the data was released at 11:30am (AEDT), up from US84.88c just before. Over the 12 months to October, building approvals were up 2.5 per cent, the Australian Bureau of Statistics said today.
Economists expected approvals to have risen 5 per cent in October.
Approvals for private sector houses fell 0.2 per cent in the month, and the “other dwellings” category, which includes apartment blocks and townhouses, was up 31.3 per cent.
The supply of housing would continue to rise, which will slow house price rises, St George senior economist Hans Kunnen said.
“The basic story is that building approvals are well above their 10-year average, that tells us that construction work going into 2015 will remain firm,” he said.
“It adds to the supply of housing so for those who are worried about house prices it is helpful.” Mr Kunnen also expects national housing price rises to slow in the short term.
“If you’re looking at it from a Sydney perspective they are not likely to decline in the near term, but on a national perspective, possibly,” he said.
“Because of the low interest rates, the population growth and the overall undersupply of housing, actual declines in housing prices on a year-on-year basis will be harder to achieve.”
This news story is reprinted from www.theaustralian.com.au
Read more details on Financial Outsourcing Services
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