New home approvals have peaked, says housing group

The Housing Industry Association has criticised government policymakers after new home approvals fell for the seventh time in nine months.

The Australian Bureau of Statistics reported that 15,659 dwellings were approved in June – up 16 per cent over the year but down 5 per cent on May.

Private sector housing approvals reached 9,145, which marked a 13.1 per cent annual rise but a 2.2 per cent monthly decline.

There were also 6,214 approvals for private sector dwellings excluding houses – an annual jump of 23.3 per cent and a monthly fall of 10.5 per cent.

Shane Garrett, senior economist at the Housing Industry Association, said the data suggested new home approvals had probably peaked.

“Despite Australia’s inadequate supply of housing, it appears the usual suspects have brought the upturn in activity to a halt,” he said.

“These include factors like slow land release and barriers to the development of residential land.”

However, Mr Garrett said there was still a “window of opportunity” to significantly add to the supply of affordable housing while interest rates remained so low.

“A greater push on this front by policymakers could ensure the housing prospects for this generation of Australians are greatly enhanced,” he said.

promoted stories

REB Events