Housing construction showing signs of weakness

by Julia Corderoy27 Aug 2015
The value of new residential construction work completed fell nationally by 3%, in seasonal terms, for the June 2015 quarter, Australian Bureau of Statistics figures reveal.

However, when looking at the 12 months to June, the value of new residential construction work done had improved by 10.6% across the country, largely due to more significant improvements in the value of residential work completed in New South Wales, Queensland, South Australia and Tasmania.

“Today’s figures underscore the important role residential construction work is playing right now in supporting the broader Australian economy,” Property Council of Australia’s executive director residential, Nick Proud said.

However, Proud says the drop over the quarter posted by most states could be signs of a slowing in commencements.

“This is something to watch as we can’t afford to see new construction levels weaken. Maintaining high activity is crucial to keep pace with housing demand, population growth and job creation.

“States such as Queensland and South Australia posted declines in the value of work done in the June quarter of 10.2% and 16.2% respectively which needs to be monitored over the forward updates.

“The value of residential construction work done in Queensland is the best it’s been since 2010, however the 2015 result still sits below the ten year annual average.”