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HOW STUFF WORKS / INDUSTRY

Building Approvals Up CE To Benefit

By David Richards | Monday | 04/09/2006

Australians are flocking back to the property market, with building approvals up 8.3 per cent for July boosted by renewed interest in flats and units.

This say the economists will drive sales of home automation gear, furniture and CE products. Don Williams of Platypus Asset Management said "At the early stages of a cycle the growth numbers are always high they then drop off. The Australian building market has been flat and is now on the way up which will lead to retail and building industry growth however we do believe that this will flatten out to around 6%.

The Australian Bureau of Statistics said building approvals rose 8.3 per cent in July, taking the overall annual increase to 9.1 per cent. Approvals to build private houses rose 4.9 per cent for the month, boosting the annual rate to 1.1 per cent.

It followed a 4.5 per cent dip in June, in the wake of the May interest rate rise. Interest rates rose again last month, taking the official cash rate to six per cent.The Reserve Bank of Australia will meet again on Tuesday and decide if another hike is on the cards. The figures showed a massive 15.4 per cent rise in approvals for units, or private sector other dwellings, taking the annual increase to 27.2 per cent.

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