Fed: Building surge not expected to last much longer: economists

AAP General News (Australia)
12-15-2001
Fed: Building surge not expected to last much longer: economists

Fuelled by the government's $14,000 first home owners' grant, new home building surged
in the September quarter.

But economists have warned of a slide next year.

The Australian Bureau of Statistics says that allowing for seasonal factors, the number
of new dwellings started in the September quarter jumped by 33.7 per cent to 40,053.

That was up from 29,967 the previous quarter and was the highest number of new housing
starts since the pre-GST boom in the June quarter last year.

That period, however, was followed by a massive slump in new housing that dragged economic
growth into the red for the first time in a decade.

St George Bank chief economist STEVE RYAN says about half the housing starts is activity
bought forward to take advantage of the government's grants.

Westpac chief economist NIGEL STAPLEDON says the September quarter surge was expected
after the mid-year rush in building approvals.

He expects it to peak in the December quarter and show negative growth in the March quarter.

AAP RTV jph/dl/pc

KEYWORD: ECONOMY (CANBERRA)

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