Rise in building approvals show a healthy Smart State economy

Growth in building approvals in Queensland continues to reflect consumer confidence in Queensland’s booming economy, Deputy Premier and Treasurer Anna Bligh said today.

“Growth in total number of dwelling approvals in Queensland strengthened to 1.0% in September 2006, to be 4.8% higher over the year, and this is the eighth consecutive month that the number of approvals had increased*,” Ms Bligh said.

The increase in total dwelling approvals in September was due to increases in private house approvals, more than offsetting the decline in the number of approvals for private other non-residential buildings (such as units and townhouses).

Nationally, growth in total building approvals moderated to 0.5% over the month, but was 6.0% higher over the year.

“Dwelling approvals are a good indicator of our general level of economic activity, and today’s results are good for business, good for confidence and most of all good news for families.

“When the employment market is as healthy as Queensland’s, people feel more secure about going ahead with plans to build, and this injects further energy and confidence into the economy.

“Lending finance data also indicate an improvement in the property investment market and this also shows consumer confidence.

“While a further interest rate rise does represent a risk for dwelling activity going forward, most of the fundamentals remain supportive of dwelling activity in Queensland.

“Our continued strong population growth means that underlying demand for new housing stock remains strong in Queensland.

“This is further evidence our economy is in great shape under the strong and stable leadership of the State Government.”

Media contact: Deputy Premier’s Office 322 44379
* ABS Building Approvals, September 2006