Construction frenzy slows in June
New home approvals are falling back amidst warnings the housing recovery may have passed its peak.
According to the Housing Industry Association (HIA), approvals for new residential constructions have fallen in seven out of the past nine months.
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“It is thus likely that we have already reached the peak in the home building recovery and that activity is likely to stabilise over the coming year,” said HIA senior economist Shane Garrett.
A total of 15,659 new dwellings were approved in June, a five per cent decline on May figures.
The largest declines occurred in Queensland, where approval was down by 10.5 per cent and Tasmania, which was down by 9 per cent.
South Australia and Western Australia fell by 3.6 per cent and 3.1 per cent respectively.
Declines were lower in New South Wales, with a drop of just 2.1 per cent.
Victoria was the only state to see an increase in building approvals in June, up by just 0.3 per cent.
Mr Garrett pointed the finger at slow land release and barriers to development of residential land, including NIMBY-ism, the attitude of ‘not in my backyard’.
“Unfortunately, it seems that this culture is catered for too much by aspects of the regulatory mechanisms for new housing,” he said.
