New housing activity failed to hit the mark in the June 2011 quarter, new data has found.
According to the latest data from the Australian Bureau of Statistics, seasonally adjusted residential building work done fell by 4.1 per cent to an annualised level of $45.4 billion in the June 2011 quarter.
“New residential building work done fell by 5.4 per cent reflecting a 1.8 per cent decline in detached housing and a slump of 11.9 per cent in ‘other dwellings’,” Housing Industry Association chief economist Harley Dale said.
“This result suggests that new dwelling investment will detract from GDP growth in the June quarter national accounts due for release in two week’s time.”
But while building construction slumped, major renovations (alterations and additions) activity posted a healthy 3.4 per cent rise in the June 2011 quarter, marking the third consecutive increase.
The annualised worth of work done on renovations was almost $7.2 billion, the highest in nearly three years.
“Major renovations activity continues to grow as Australians increasingly baulk at the mounting transaction costs and taxes they will incur if they trade-up to another property or build a new home,” Mr Dale said.