/www.bloomberg.com/ By Emily Parkinson
Sydney, Jan. 6 (Bloomberg) -- Australian building approvals probably fell in November, signaling a housing boom that has been driving economic growth is slowing.
Approvals to build new houses, apartments and undertake renovations probably fell 15.5 percent in November, according to the median forecast of 14 economists surveyed by Bloomberg News. That follows an unexpected 25.3 percent jump in October. The Australian Bureau of Statistics releases its building report at 11:30 a.m. Sydney time tomorrow.
Central bank governor Ian Macfarlane last month said he expects the economy will grow 3 percent in the year to June 30, 2003, less than the 3.5 percent to 4 percent he forecast in May, partly because of the slowing housing boom.
Residential construction rose to an eight-year high in October, buoyed by a 68 percent increase in approvals for apartments and alterations to existing buildings. Approvals may slow this month as the supply of apartments outstrips demand, economists said.
``The near-term activity will be supported in the apartment sector, but through 2003 you will see a marked slowdown in apartment approvals, which will put more pressure on house prices,'' said Simon Doyle, economist from AMP Henderson Global Investors Australia Ltd.
Building approvals were 16.7 percent higher in the year ended October 30, supported by home loan rates close to 30-year lows and a government handout to people building their first home.
The central bank has kept interest rates unchanged the past six months.