Building approvals jolt market

BUILDING approvals roared back to life in May, posting the largest monthly increase since at least 1980.

BUILDING approvals roared back to life in May, posting the largest monthly increase since at least 1980, as councils gave the green light to a flurry of apartments and townhouses.

Approvals for new dwellings rose a whopping 27.3 per cent in May following an 7.6 per cent fall in April, according to the Australian Bureau of Statistics. On an annual basis, building approvals rose 9.3 per cent in May after a 23 per cent plunge the month before.

Economists had forecast building approvals to rise 5 per cent in May while falling 15.2 per cent in the year to May, according to Bloomberg.
Advertisement: Story continues below

"It's too early to know if we're at a genuine turning point on housing or not," said Citi chief economist Paul Brennan, noting that various grants and tax incentives in New South Wales and Victoria might have boosted May approvals.

Private sector house approvals rose 8.7 per cent in May, seasonally adjusted, while multi-unit buildings jumped 58.7 per cent in the month, the ABS said.

Read more at Brisbanetimes.com.au

Originally published as Building approvals jolt market