Housing market
More new apartments approved – trend reversal or straw fire?
In the first three months, the building authorities in Germany approved more new apartments. It is by no means certain whether this is enough for a trend reversal at the tense housing market.
The building offices in Germany were a bit more busy recently: In the first quarter of this year, more new apartments were approved for the first time after a long dry spell than in the same period last year. 55,400 new units from the family home to the storey apartment mean annual growth of 3.4 percent, as reported by the Federal Statistical Office.
The first economists see a trend reversal after falling approval for years. The scientific director of the trade union institute for macroeconomics and economic stimulus research (IMK), Sebastian Dullien says: “With the reported plus in the building permits in March, the valley sole should be through the residential building.” He initially counts on a construction activity at a low level, but the trend shows upwards. Increased purchasing power and sunken interest are likely to support residential construction.
Building loans a little cheaper
In fact, construction loans have become a little cheaper in the past few weeks, as the loan broker Dr. Klein reported. After a maximum of 3.4 percent in March, the borrowing interest rates for a model loan with a 10 -year term currently decreased to 3.19 percent. So building is a little cheaper on the financing page. The other problem is the steadily increased construction costs.
According to the statistics office, the vast majority of 46,100 approved apartments from the first quarter should be created in new buildings. The number of approved single -family houses grew particularly strongly: 15.3 percent to 10,600 units.
Even with the somewhat stronger increase to the quarter -end – in March the permits of 5.8 percent, the Central Association of German Construction Management only sees the reason for careful optimism. Instead of 55,400 permits, a level of 90,000 units such as in the start quartals 2021 or 2022 are needed to meet long -term needs, says general manager Felix Pakleppa. “We are currently moving further from the order stocks.”
Lock since 2010
Last year, the number of approval in Germany had fallen by almost 17 percent to the lowest level since 2010. The authorities had just approved 215,900 new units. However, there is also a mountain of around 800,000 approved and previously not realized apartments, the so -called construction overhang. A not inconsiderable part cannot be financed on the current conditions, the industry speculates and calls for a precise check of the statistics, the latest figures of which are to be published on Friday next week.
Tailwind for Minister of construction
More new apartments are also the declared goal of the new federal government. The new Federal Minister of Construction Verena Hubertz received some tailwind with the number of approval before taking office. The SPD politician has announced for the first 100 days of her term in starting a “housing turbo”.
Under the motto “Tempo, technology and tolerance”, Hubertz wants to accelerate approval procedures, advance modern construction methods and enable the designation of more building land. Tim-Oliver Müller from the main association of the construction industry is happy to hear this: So far, the authorities have made precise specifications during construction, which had not led to the greatest possible productivity. Industry is ready to develop and implement inexpensive solutions.
Notification of Destatis Dr. Small to interest development
dpa
Source: Stern
