Warning sign for governments in approvals data

The risk from new taxes on foreign investment is clear from official new data that shows building approvals have passed their peak, according to the Property Council.

The ABS data on building approvals for May 2016 shows a 9.1 percent annual fall, in seasonally adjusted terms – and the bulk of states declining.

“Building approvals are a good indicator of future construction and jobs and serve as a warning to governments,” said the Property Council’s Chief of Policy and Housing Glenn Byres.

“We have a fall of 9.1 percent in annual terms, with a decrease of 11.3 percent in seasonal terms for apartments over the month.

“Yet three states governments in NSW, Queensland and Victoria are rushing ahead with taxes on investment that will hurt supply and housing affordability.

“The official data shows Victoria has fallen 12.8 percent since it announced its new tax, and there are softening conditions in NSW and Victoria.

“The new anti-investment taxes represent bad taxes at a bad time and all three states should be instead looking to real policies to improve housing affordability.”

 

National

VIC

TAS

NSW

SA

QLD

WA

Terms

Seasonally Adjusted

Seasonally Adjusted

Seasonally Adjusted

Seasonally Adjusted

Seasonally Adjusted

Seasonally Adjusted

Seasonally Adjusted

No. Approvals
(May 2016)

19,276

5,847

206

5,908

998

3,809

1,598

Annual change (%)

-9.1%

-12.8%

-19.5%

-2.7%

27.9%

-7.3%

-43.7%

Monthly change (%)

-5.2%

3.1%

0.0%

-6.9%

-13.1%

-17.6%

-20.0%

 

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