Building approvals fall in June
The number of new housing projects receiving the green light across Australia fell by 2.5 per cent in June.
New figures published by the Australian Bureau of Statistics have confirmed that construction activity was down, which was a shame considering the positive results from the previous month.
Indeed, the number of dwellings that were given the go ahead in May was up by 27 per cent.
The overall value of approved buildings also tumbled by 9.8 per cent in June, which ended two consecutive months of growth.
Private sector house building dropped by 4.5 per cent in New South Wales and 3.3 per cent in Victoria, but rose in Queensland, Western Australia and South Australia.
This is perhaps unsurprising when taking the high cost of living in Sydney and Melbourne into account and the demand for mortgages in these places is clearly subdued.
Earlier this month, the Housing Industry Association warned the government that it needs to step in to give the property sector a boost and these latest figures show the organisation has every right to worry.
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