Home News Building approvals surge in September

Building approvals surge in September

Font size :
Latest figures from the Australian Bureau of Statistics (ABS) showed building approvals rose 6.1% in September to 13,286. Analysts were forecasting a 2.1% for the month. Approvals to build private dwellings rose 4% - it's highest level in 16 months. Solid demand from the unit and apartment sector drove the overall result, with approvals jumping by 11.4%. Commonwealth Bank of Australia economist, Joseph Capurso, said building approvals are strong and suggests that consumers appear to have shrugged off the RBA's recent rate rise. "The fundamentals support a high level of approvals. In our view, strong growth in population and low unemployment will support demand for housing even though interest rates are rising. Another interest rate increase-likely to be next week-will not cause a slump." However, not every one is optimistic about the prospect of the housing sector. Despite the healthy growth in building approvals, the Housing Industry Association (HIA) sees a subdued outlook for the new housing market. It's latest survey of the country's largest 100 residential builders revealed a 3% drop in sales of new home and units in September, blaming the increase in interest rates for the weak numbers. "Higher interest rates don't only hit buyer sentiment, they also worsen an existing housing supply problem. This lack of supply is costing the industry growth and is putting more pressure on rental markets," according to Simon Tennent, HIA's executive director for economics and housing.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate

The sprawling redevelopment aims to boost the supply of affordable housing in Sydney Read more

A new suburb will be built in west Melbourne A new suburb will be built in west Melbourne Mount Atkinson will become home to more than 22,000 people over the next 15 years ... Read more

Surging house prices threaten liveability in Melbourne Surging house prices threaten liveability in Melbourne Analysts warn the city could become just as unaffordable as Sydney, if property trends continue ... Read more

More Aussies would benefit from regional hubs linked to cities More Aussies would benefit from regional hubs linked to cities Shorter commutes could spur higher home sales in regional towns, analysts say ... Read more

More mortgage news and articles

Sponsored Links

Sunday, Aug 20, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords