The ABS release of building activity data for the March 2014 quarter confirmed a strong recovery for new home building, said the Housing Industry Association (HIA). Source: Timberbiz
“New dwelling commencements grew by a strong 8.7% in the March 2014 quarter, with that result including a 12.8% surge in detached houses,” said HIA Chief Economist, Harley Dale.
“All states and territories except South Australia experienced growth in the quarter.
“The annual level of new dwelling commencements is at its highest since late 2010 and at 176,891 is approaching historical peaks, with further upward momentum to come.
“At a time when the economy is generally regarded to be under-performing, new home building is achieving the opposite outcome.
“Given the reach of the sector into parts of the retail, manufacturing, and supply sectors, new housing is providing a crucial economic dividend for the nation.
“The challenge is to harness this momentum and use it as the platform for enacting real housing policy reform. We need to lock in a structural increase in the number of homes we build in the years ahead if we are to successfully house our growing and ageing population.
“Low interest rates and some limited housing supply reforms to date won’t get us to that point.”
Across the states, total dwelling commencements increased in all of the states and territories, bar South Australia, where commencements fell by 7.8%.
The strongest increase was in the Australian Capital Territory (31.6%), followed by Victoria (15.4%), Western Australia (12.1%), the Northern Territory (5.9%), Tasmania (5.3%), New South Wales (2.5%) and Queensland (1.3%).
“We saw a rise of 0.8% in the value of larger alterations and additions in the March 2014 quarter,” said Mr Dale.
“The rate of expansion in alterations and additions expenditure, which has occurred over two consecutive quarters now, remains modest, especially in the context of total renovations investment hitting a decade low in 2013.
“It is important we see evidence emerge of a strong recovery in this key segment of the residential construction industry.”
