Signs of life in approvals but not for long

Font size :
Approvals of all dwellings in the monthly building approvals figures released by the Australian Bureau of Statistics were up by 3.3% during May. However, the result was a full 11.7% lower than in May 2005. The MBA believes that the effect of the May interest rate rise, rather than taking hold immediately, will become apparent in around six months time. "These things do take time. We have already had an immediate impact in terms of enquiry levels," said MBA chief economist Peter Jones. While building approvals for houses grew only marginally during May, approvals for "other dwellings" which includes apartments and townhouses, shot up by 10% - although approvals in this category have pared back a full 25.6% since this time last year. The MBA estimates that with prices of building materials continuing to spiral upwards, this month's positive result is unlikely to be sustained, and the trend for the next six to twelve months is likely to be downward. "The approval figures for apartments are way down on a year ago. Building costs are still rising and there is very little capital growth in apartments around the country, besides Perth. For investors, the logic has disappeared from the market and will probably stay down for the next six months," said Jones. On a state-by-state basis, seasonally adjusted approvals fell by 34% in South Australia and 8.4% in Western Australia. Conversely, rises were recorded in Victoria, up 21.5%, Queensland, which improved by 8.5% and New South Wales, up 6.1%.

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Wednesday, Sep 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