1 Sep 2010

Demand for new homes picked to stay subdued

7:46 am on 1 September 2010

An economist says the demand for new homes is likely to remain subdued as the economic recovery dawdles along.

The number of new building consents issued rose by 3.1% in July.

Excluding volatile apartment numbers, housing consents fell a seasonally adjusted 5.3% to a 10-month low of 1269.

Commonwealth Bank of Australia economist Chris Tennant Brown says housing consents are likely to remain low, given the economic conditions.

The value of non-residential consents also appears to be softening, he says, which paints a bleak outlook for the construction sector

More than 200 consents for apartments were granted during the month, the highest in more than a year.