Housing starts surge in September quarter
December 21, 2009
The much needed recovery in new home building got off to an encouraging start in the September 2009 quarter, according to HIA, Australia’s biggest residential building association.
Australian Bureau of Statistics figures showed that housing starts increased by 9.4 per cent in the September 2009 quarter following four consecutive quarters of decline. The news is very welcome in a country where a supply shortage remains a cause for concern in the coming years.
“The First Home Owner Boost together with very low variable mortgage rates drove an increase of 8.4 per cent in detached house starts in the September quarter,” HIA’s Senior Economist, Ben Phillips, said. “Meanwhile the Federal Government’s Social Housing Initiative played a role in generating a 13.1 per cent rise in other residential dwelling starts in the September quarter, from an awfully low base.
“Even allowing for the emergence of a new home building recovery, housing starts are still only running at an annualised level of 136,328. That is substantially below the level required to meet the demands of a rapidly growing population.”
HIA forecasts indicate that housing starts will continue to grow in the current financial year - to be up around 9% year-on-year. Further recovery, however, will be threatened by any lack of progress in reducing the considerable supply side obstacles to residential construction, including re-emerging land and labour shortages, the HIA claimed.
The number of housing starts in the September 2009 quarter grew by 3.2 per cent in New South Wales, 4.9 per cent in Tasmania, 17.6 per cent in the Australian Capital Territory, 8.2 per cent in Victoria, 22.4 per cent in Queensland, 3.2 per cent in South Australia, and 13.8 per cent in Western Australia. Housing starts declined by 5.6 per cent in the Northern Territory.
