Approvals in the three months to July 2019 were down by 10.5 per cent from the previous three months according to a recent report from the Australian Bureau of Statistics.

While detached house approvals were down 3 per cent, HIA Chief Economist Tom Devitt said two interest rates cuts, a tax cut and the repeal of regulatory restrictions are still expected to encourage increased activity in the home building market.

“These measures, combined with ongoing stable population and employment growth should see approvals improve towards the end of the year,” said Mr Devitt. 

At a glance: 

• Building approvals down by 10.5 per cent in the last three months leading to July 2019.
• During July approvals for new homes fell to lowest since January 2013 driven by a reduction of 19.6% in new apartment/unit approvals compared with June.
• In July, the value of commercial building work receiving approval declined by 9.9 per cent compared with the previous month.

Master Builders Australia wants to see immediate action, calling on the Government to set policies to encourage more activity in the building sector.

“We want to see Government policies, such as incentives for businesses to invest, as well as fast-tracking infrastructure construction to help kickstart activity,” said CEO, Master Builders Australia, Denita Wawn.

Shane Garrett, Master Builders Australia’s Chief Economist said starting on major infrastructure projects would provide visible evidence that better days were ahead for the economy.

“As well as offering an instant boost to flagging demand, the installation of new infrastructure unlocks possibilities and opportunities, and allows for the creation of more homes and new businesses – the nuts and bolts of economic growth,” said Mr Garrett. 

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