Jobs to be hit as approvals slow

Official new data showing another drop in housing approvals shows the peak in construction activity has passed, according to the Property Council.

The ABS data on building approvals for June 2016 shows a 5.9 percent annual fall, in seasonally adjusted terms – and the bulk of states declining.

“The fall in approvals points to a future slowdown in jobs flowing from construction,” said the Property Council’s Chief of Policy and Housing Glenn Byres.

“Housing construction has been one of the few shining lights in the economy but is being constrained by a mix of tighter lending conditions and poor policy frameworks.

“In particular, the blend of increasing property taxes – exemplified by the new slug on foreign investment in eastern states – and inflexible planning systems is hurting supply. 

“We need a concentrated focus from all tiers of government on the need to maintain a sustainable and sensible supply of housing to meet the growth of our cities. Housing affordability currently lacks leadership and ownership from national and state governments.”

 

Media contact:  Glenn Byres  |   E  gbyres@propertycouncil.com.au