The underlying strength in building approvals continues and should help sustain growth in residential building despite the 5 per cent seasonally adjusted fall in the building approvals for June,” Wilhelm Harnisch CEO of Master Builders Australia said.
“We need to look beyond the monthly volatility in approvals for high-rise apartments, which saw a fall of 8.4 per cent seasonally of approvals for apartments down from the strong 25 per cent seasonally adjusted rise in May 2014,” he said.
“The softening of approvals for apartments is not unexpected given the exceptionally strong growth in the first half of this year,” Wilhelm Harnisch said.
“Overall building approvals will continue to improve but likely to be at a slower rate,” he said.
This is highlighted by Queensland which recorded a fall of 10.5 per cent seasonally adjusted in total dwellings approved in June following a rise of nearly 50 per cent seasonally adjusted in May 2014.
“Approvals for detached housing are forecast to show continued further growth largely as a consequence of the undersupply of housing and the low interest rate outlook,” Wilhelm Harnisch said.
“Overall, the latest data is consistent with the good pipeline of work that underpins the industry’s confidence in forecast growth in the residential building sector,” Wilhelm Harnisch said.