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Anonymous

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From: Anonymous



Building approvals up

From AAP
04dec01

THE building recovery is back on track with new figures showing building approvals jumped 1.8 per cent in October, making up almost half the ground lost the previous month.

The Australian Bureau of Statistics said the number of dwellings approved for construction rose to 15,294, a 56.5 per cent improvement on the same time last year.

The seasonally adjusted rise helps make up for the 4.3 per cent dip in building approvals in September.
 
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Anonymous

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Reply: 1
From: Anonymous



Housing sector steams ahead


04dec01

THE housing industry boom shows no sign of abating, with figures today revealing a 1.8 per cent jump in building for October - thanks to low interest rates.

The Australian Bureau of Statistics said the number of dwellings approved for construction rose to 15,294 - a 56.5 per cent improvement on the same time last year.

The seasonally adjusted rise was larger than most had been expecting and helps make up for the 4.3 per cent dip in building approvals in September.

Economists said the ongoing strength in building approvals confirmed that historically low interest rate were providing support to the housing sector.

Australian building approvals rose 1.8 per cent to 15,294 units in October, seasonally adjusted, from an unrevised 15,025 units in September, the ABS.

Building approvals have risen a staggering 56.5 per cent since last October.

Deutsche Bank economist Adam Boyton said today's data provided a stronger than expected result.

He said building approvals were expected to plateau at these high levels until the interest rate cycle turned to tightenings.

"Medium density approvals continue to rise, which is important for the next few months. Private sector medium density approvals are up over 60 per cent in the last three months.

"We're looking for those to correct lower in the next couple of months," he said.

The strength in medium density approvals was concentrated in New South Wales.

Most of these applications were traditionally lodged by developers rather than individuals to build apartments and unit buildings.

Private sector house approvals were essentially flat in October after falling nearly 8 per cent in September.

"There is enough work in the pipeline for housing construction to keep contributing to activity well into the first half of next year, and possibly beyond that," Mr Boyton said.

National Australia Bank senior economist Tony Pearson said there were signs that the cyclic upswing may be peaking, but residential construction would continue to make a solid contribution to GDP growth over the next year.

Mr Pearson said multi-unit dwellings approvals were up 5.3 per cent, mainly in NSW.

That was the highest approval rate in that sector in NSW since September 1994.

There was no change in the rate of approvals for houses following a 7.2 per cent fall in September.

"This cyclic upswing has been much sharper than usual. It has in part been the normal industry response to lower interest rates, but has also been boosted by the generous federal government's first home owners scheme," he said.

Mr Pearson said today's data confirmed that this would be one domestic sector which would make a solid contribution to growth over the medium term.

Housing construction is expected to remain strong until mid 2002 and continue to support the broader economy."

AAP
 
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But wait there's more! (MC)

Reply: 1.1
From: Owen .


Why is someone who won't post their name trying to talk up the market?



Owen

"Gambling promises the poor what property performs for the rich – something for nothing"
 
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WebBoard

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Reply: 1.1.1
From: Kevin Forster



The funny thing is that it's illegal to excessively talk up a share on websites.

You could be accused of a "pump and dump" scheme.
 
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Anonymous

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Reply: 1.1.1.1
From: Anonymous


Interest rate cut expected

From AAP
04dec01

A BOUYANT housing industry will help Australia weather the world economic storm but homeowners can still expect a pre-Christmas dose of interest rate relief.

The Reserve Bank of Australia (RBA) board met today for the last time this year and is widely tipped to announce a 0.25 percentage point cut tomorrow morning after leaving rates on hold during the election campaign.

The cut would be the sixth this year and give mortgage holders an extra $22 a month to spend over the holiday season, based on an average $150,000, 20-year mortgage.

If the RBA defies expectations and opts for a larger half a percentage point cut, the savings would be $43 a month.

Economists said the existing historic low interest rates had helped fuel a higher-than-expected 1.8 per cent rise in building approvals in October, seasonally adjusted.

The 15,294 houses and units approved for construction was a 56.5 per cent improvement on the same time last year and came after a stumble in the housing recovery in September, when approvals dropped 4.3 per cent.

The Housing Industry Association said pent-up demand would keep builders humming along for another six months.

But the Master Builders Association warned building approvals may have peaked and said another rate cut would support the industry without fuelling a housing boom.

"Another cut in interest rates should maintain homebuyers' confidence and help sustain the new housing market over the next 12 months," chief economist Wilhelm Harnisch said.

The latest survey of industrial trends from Westpac and the Australian Chamber of Commerce and Industry (ACCI) painted a mixed picture of the economic outlook.

The survey, done just after the federal election, showed manufacturing activity strengthened in the December quarter, with 75 per cent of businesses working at or above their normal levels, a seven-year high.

But business confidence dipped dramatically, with the number of businesses expecting an improvement in the economic climate over the next six months halving to 15 per cent.

The number bracing for a downturn doubled to 39 per cent.

Westpac economics general manager Bill Evans said it was the first time the survey had shown such a split between activity and expectations, and he put it down to the global economic uncertainty.

He said the doubtful outlook meant the RBA would opt for a modest rate cut.

"They'll cut by a quarter of a per cent, they'll withstand any temptation to go by the full half per cent and that is consistent with what we are seeing in the survey," he said.

ACCI chief executive Mark Paterson said the building industry was the only bright spot on the horizon over the next six months, with sales and production both expected to fall.
 
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Anonymous

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Reply: 1.1.2
From: Anonymous


Hi Owen and Kevin,

Firstly, I am posting info pinched from AAP and they might take a dim view of that.

Secondly, my initials are at the end of the topic in brackets.

Thirdly, is posting news "ramping" or talking up the market?

Fourthly, do you think that a couple of hundred viewings of an individual post is going to influence the market??

regards, MC (there must be at least twenty of us on the forum ;^)
 
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But wait there's more! (MC)

Reply: 1.1.2.1
From: Owen .


On 12/4/01 4:29:00 PM, Anonymous wrote:
>Hi Owen and Kevin,
>
>Firstly, I am posting info
>pinched from AAP and they
>might take a dim view of that.

*** I don't think that AAP will have a problem with you passing on information which is published on the World Wide Web. You are crediting them with it anyway and your point 4 covers it anyway.

>Secondly, my initials are at
>the end of the topic in
>brackets.

*** I wondered what that was...

>Thirdly, is posting news
>"ramping" or talking up the
>market?

*** I just makes you wonder when it comes from an anonymous source. There was no personal comment so I had no idea what the purpose of the post was. Just a cynical moment from me I guess.

>Fourthly, do you think that a
>couple of hundred viewings of
>an individual post is going to
>influence the market??

*** See point 1 and 3.

>regards, MC (there must be at
>least twenty of us on the
>forum ;^)

*** If you don't want to get lost in the crowd of MC's then just register with a funky nickname and become known for your own contributions. Articles are welcome but individual comment is what the forum is all about. Anyway, thanks for articles.

Owen

"Gambling promises the poor what property performs for the rich – something for nothing"
 
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