Tuesday, July 3, 2007
NSW posted the largest fall in building approvals in May, dropping a sharp 12 per cent, despite a 1.8 per cent rise in private sector approvals.
Building approvals tumbled in May as the cost of building a new home turned buyers towards the established housing market, leading to fears the housing sector will hit "crisis point" within a year. In May, building approvals fell 5.6 per cent to a 12,004 units, seasonally adjusted, to be 7.2 per cent lower than a year ago, Australian Bureau of Statistics figures showed. The result surprised economists, who had expected approvals to fall 1.4 per cent during the month following the 8.1 per cent increase in April.