Tasmanian dwelling approvals are tanking despite record population and concern about a housing shortage.
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Statewide approvals fell for a fifth successive month in May in trend terms, the Australian Bureau of Statistics estimated.
The 249 May approvals were 12.3 per cent weaker than the 284 estimated for December, which was the strongest month since late 2009.
Tasmanian approvals increased strongly for most of the period since mid-2016, before the recent dip.
May approvals also weakened in Victoria, New South Wales, Western Australia and the Northern Territory.
Nationally, approvals increased by 0.7 per cent in May in seasonally adjusted terms, but were 19.6 per cent weaker than in May 2018.
It was unclear how much the recent Tasmanian decline was related to uncertainty about the federal election and potential policy changes related to investment housing.
Those changes came to nothing when the Coalition won the May election and the Tasmanian real estate industry reported a strong increase in activity immediately afterwards.
Federal elections always impact market confidence and the discussion around new tax imposts on investors though an increase in capital gains tax magnified this uncertainty in the first part of the year.
- Tim Reardon
The Housing Industry Association said sales of new homes in May reached their highest level in more than a year, based on sales by the biggest home builders in the five mainland states.
"The pick-up in sales during May follows lacklustre results throughout the first four months of 2019," HIA chief economist Tim Reardon said.
"Federal elections always impact market confidence and the discussion around new tax imposts on investors though an increase in capital gains tax magnified this uncertainty in the first part of the year.
"This month's result confirms our expectation that the decline in building activity will start to level off in the second half of 2019 and stabilise at a level below the highs achieved back in 2017.
"Income tax cuts, solid population growth and accelerating wage growth are necessary to ensure that the market does not decline further."