News.com.au, 2nd July 2008

It quoted official figures showing the 6.5% decline in May building approvals more than overturned the previous month’s 5.4% rise.

Australian Bureau of Statistics data was showing building approvals for the year to May were up just 0.2%, it said.

The story, by staff writers and wire services, also quoted Housing Industry Association chief economist Harley Dale as appealing to state and federal governments to reduce taxes and charges and cut red tape in an effort to decrease the cost of new homes.

Except for South Australia and Tasmania, he said, building approvals had trended downwards to date in 2008.

JPMorgan economist Helen Kevans reportedly said the current economic climate, of elevated building material costs and high interest rates, was likely to dampen the construction sector for months.

Its outlook was negative.

ICAP senior economist Matthew Johnson said the unexpected rise in building approvals in April – the first month of growth since November last year - was just an aberration.

Fast action may be necessary for owner residents and investors wanting to buy residential properties.

The online website News.com.au on July 2 speculated Australia’s housing shortage could be escalating.