The number of residential building permits in Australia fell 5% in April from March, with the most significant drop in approvals for apartment projects. The market had expected the number of new home approvals to decline by 3%.
According to the latest (Australian Bureau of Statistics) data released by the Australian Bureau of Statistics, the total number of homes approved fell from 19693 in March to 18701 on a seasonally adjusted basis.
Private-housing approvals rose 0.1 percent in April, while other residential types, including apartments and townhouses, fell 11.5 percent.
Home prices have risen by an average of 8% over the past five years, providing a cushion for Australia`s national economy as it transitions from a mining boom.
Diana Mousina, an economist at (AMP), a security group, said the decline in housing approvals and the easing of house prices would have an impact on the economy. "over the past few years, strong house price growth and reduced household savings have also had a positive effect on consumption. But in the long run, savings rates are unlikely to fall sharply again, limiting consumer spending. Weaker consumption will bring greater downside risks to the Australian economy, "he said.
(Housing Industry Association), the housing industry association, is a bit more optimistic, pointing out that the performance of independent homes remains strong.
Shane Garrett, the association`s senior economist, said: "the number of new independent homes approved has reached its highest level in 15 years. The rapid population growth is itself a solid product of the labour market in Australia`s major cities, while maintaining strong demand for new housing. "
In April, the number of new homes approved for the capital Territory (ACT) was the highest in the country, up 39.2 percent from last year. Growth in the same period included Victoria (25.8%), Tasmania (15.2%) and South Australia (1.9%). Over the same period, home approvals fell in four regions: Kunzhou (- 11.5%), Northern Territory (- 6.6%), New State (- 5.4%) and Western Australia (- 3.0%).
According to this month`s figures from the Australian Bureau of Statistics, the construction industry in Australia was generally stable, with construction output rising only 0.2 percent in the first quarter, down from 1.3 percent previously expected. Gross residential construction fell 1.3 percent during the year, thanks to the fact that construction and non-residential construction filled the gap, up 10.3 percent and 5.4 percent, respectively.
