Building approvals rebound

Staff Reporter

Building approvals rebounded in November, but remain well down on traditional averages, the Housing Industry Association has claimed.

According to the latest data from the Australian Bureau of Statistics, building approvals rose by 8.4 per cent following a 10 per cent drop in October and a 14.8 per cent fall in September.

Detached house approvals rose by 4.9 per cent in November while approvals for other dwellings rose by 16.1 per cent.

Despite the increase, total November approvals are still down by 18.9 per cent on one year earlier.

"At least today's approvals update is on the right side of zero growth, but the level of total approvals remains weak and serves to reinforce the need for further interest rate cuts in the first half of 2012," HIA senior economist Harley Dale said.

"Further rate cuts are absolutely essential to shore up home buyer confidence in light of global economic conditions and to help ameliorate the effects of the increased consumer caution that has pervaded the Australian economy since the GFC.

"Building approvals over the three months to November 2011 imply an annual level of housing starts of under 130,000. That is lower than the level reached in GFC-affected 2008/09 and strengthens the case for urgent government action in addition to further rate cuts."