ABS confirms positive year for New Housing construction in 2012/13

 

Recently released ABS housing data includes crucial information regarding dwelling commencements, and confirms a modest increase for 2012/13 following two consecutive yearly declines.

Dwelling commencements increased by 11.2 per cent over the two year period, and according to Housing Industry Associations Chief Economist, Dr Harley Dale, this is an encouraging recovery following declines during 2010 and 2011.

“A substantial upward revision to the March 2013 quarter contributed to housing starts surpassing the 160,000 mark in 2012/13, reaching a level of 161,043,” noted Dr Dale. “That is a healthy figure by recent standards and certainly a promising first round recovery for new home building.”

“What is less encouraging is that all the growth occurred in the first half of the year, following which housing starts declined in the March 2013 quarter and held steady in June.

“We now need to see an acceleration of growth in 2013/14 reflective of a broad-based recovery in housing starts. That outcome will require further upward momentum in New South Wales and Western Australia, together with a re-emergence of sustained growth in other markets,” continued Dr Dale.

“A sustained improvement in confidence, together with low interest rates, would assist the prospect of the recovery gathering legs. The current regulatory and taxation environment combined with ever tightening credit conditions for residential development significantly dilutes the chances of securing this outcome,” added Harley Dale.

The June 2013 quarter data shows healthy gains in dwelling commencements in Queensland (up by 8.0 per cent), South Australia (up by 6.0 per cent), Western Australia (up by 11.3 per cent), Tasmania (up by 15.6 per cent), and the ACT (up by 107.6 per cent). Quarterly declines were recorded in NSW (down by 8.0 per cent), Victoria (down by 2.2 per cent), and the NT (down by 15.1 per cent).

Posted by Charles Tarbey on 18/10/2013 at 12:00 AM | Categories:

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