The construction of new residential housing has increased by 2.2% in the June 2014 quarter, according to official figures. Comparing year on year, residential building work done has increased by 9.6% since June 2013.
The preliminary figures released by the Australia Bureau of Statistics show that the key driver of the growth this quarter was due to the detached housing segment. These results haven’t revealed any unexpected surprises, says an economist for the Housing Industry Association
, Diwa Hopkins.
“These developments are largely in line with what we have been expecting of the current new home building cycle; that larger improvements in detached house building activity would follow in the wake of the previously strong growth experienced by the multi-unit segment of the market,” Hopkins said.
“Unfortunately, conditions in the major-renovations segment of the market remained subdued, with the value of this work done declining by 2.4 per cent during the June 2014 quarter,” she added.
New home lending
also increased in the quarter to June 2014, according to official figures released earlier this month, which is helping to drive the growth in new residential construction. Both of these figures come as good news for the property market, as an increase in housing supply will help to keep property prices from overheating.