Another Positive Dwelling Approvals Figure Demonstrates Importance of 'Boost' to Maintain Momentum

A second consecutive increase in dwelling approvals is further evidence that stimulus measures are working to spark a recovery, according to Master Builders Australia.
Mr Peter Jones, Chief Economist, said “The fact that this important forward indicator is turning positive augers well for future activity but only if an upswing can become firmly entrenched.”
He said, “A recovery in dwelling approvals should over time, translate into increased commencements and therefore improved residential building activity later in the year.”
“This highlights the importance of the first home owners ‘boost’ scheme, particularly for new homes, and the need to maintain it beyond 30 June, thereby ensuring that momentum is sustained in a sector so vital to Australia’s short term economic prospects.
“Although the pick up in approvals does give cause for optimism for the future, actual residential building activity in the here and now is suffering another ratchet down as a result of the crisis of confidence experienced in the latter part of last year.”
“With another big fall in housing commencements expected for the March quarter and only 130,000 starts predicted for 2008/09 — a 17 per cent decline on the previous year — Master Builders believes it would be unwise to end the ‘boost’ scheme prematurely.”
• The total number of dwelling units approved, seasonally adjusted, rose by 3.5 per cent to 10,494 in March, to be 16.5 per cent lower than the same month in the previous year.
• Private sector house approvals rose by 2.8 per cent to 7,333 to be down 15.7 per cent on the same month last year. The more volatile private sector ‘other dwellings’ (apartments and townhouses), rose by 2.8 per cent in March to be 22.4 per cent lower than in March 2008.
• The value of non-residential building approvals, seasonally adjusted, fell by 9.8 per cent in March, to be 23.6 per cent lower than in March 2008.

Via http://www.masterbuilders.com.au/about.html