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Building activity shows signs of rebound

Building activity shows signs of rebound

by Emma Ryan | October 11, 2019 | 1 minute read

The number of new homes commencing construction has increased over the June quarter – the first increase seen since December 2017.

October 11, 2019

According to research by the ABS, the number of new homes commencing construction over the quarter increased by 1.1 per cent. 

Despite a small improvement in new home starts in the June quarter, they remain 20 per cent lower than the same period a year ago, noted HIA economist Tim Reardon.

“The increase in total starts was due to a 21 per cent lift in multi-unit starts, mainly in NSW and Western Australia. Detached housing starts have slowed to their lowest level since December 2013,” he explained.

“More recent data informs us that the downturn in detached home starts has slowed. The impact of three cuts to interest rates and small fiscal stimulus has slowed the decline in work entering the pipeline.

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“The slowdown in building activity over the past 18 months has adversely affected the national economy and has been one of the main drags on GDP growth. A return to normal lending conditions would provide a boost to home building and the wider economy.

“Indications are that the downturn in new projects entering the pipeline are starting to improve following cuts to interest rate but the market is not yet at the bottom of this cycle.

About the author

Emma Ryan

Emma Ryan

Emma Ryan is the deputy head of content at Momentum Media.

Emma has worked for Momentum Media since 2015, and has since been responsible for breaking some of the biggest stories in corporate Australia, including across the legal, mortgages, real estate and wealth industries. In addition, Emma has launched several additional sub-brands and events, driven by a passion to deliver quality and timely content to audiences through multiple platforms.

Email Emma on: [email protected]com.au

Building activity shows signs of rebound
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