Housing approval data needs careful analysis

The leap in housing approvals in the past month needs to be viewed carefully given longer-term trends in the market, according to the Property Council.

New ABS data released today showed total approvals across the nation increased by 11.3 percent in seasonal terms in July 2016.

“Everyone with an interest in housing affordability would love to see the increase in approvals sustained,” said Glenn Byres, the Property Council of Australia’s Chief of Policy and Housing.

“But we need to exercise caution given we had previously seen sliding approvals numbers, lending conditions are tightening and new taxes on housing supply coming into play.

“As the nation’s biggest market with the largest housing deficit, the story in NSW will be one to watch in particular.

“It has had a one-off jump in approvals but still sits below its peak in July 2015 and has had approvals below 6000 for eight of the past 12 months.

“Mike Baird’s decision to tax housing supply backed by foreign investment risks is adding to the woes of a state with the nation’s worst planning system and biggest housing deficit.”

Media contact:  Glenn Byres  |  M 0419 695 435 |   E  gbyres@propertycouncil.com.au