Building approvals take a hit

Building approvals slumped again in July, proving that the Australian property market has not yet bottomed out.

Last month, approvals dropped by 17 per cent, according to the Australian Bureau of Statistics (ABS) and year on year, they were down by 10.6 per cent.

Speaking to Sky News about the reduction, AMP's chief economist Shane Oliver claimed that would-be buyers' uncertainty could be playing a major part in the crisis.

He told the news provider that recent interest rate cuts were good for the country's economy and the housing sector, but that weak confidence among buyers was having a major impact on home builders.

Mr Oliver also believes that further rate cuts are on the cards at the Reserve Bank of Australia (RBA) as it attempts to kick-start house building and get more first-time buyers on the property ladder.

Earlier this month, the Housing Industry Association claimed that too few construction projects were being given the go ahead and this was impacting upon housing supply in the marketplace.

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