Dwelling commencements fell over the March quarter, reinforcing the idea that more work is needed to ensure a home building recovery.
According to data from the Australian Bureau of Statistics (ABS), housing commencements fell by 5.5 per cent over the March quarter.
“The number of dwelling commencements fell in five out of six states in the first quarter of 2013, while a flat result was recorded for New South Wales. On a six-month annualised basis, dwelling commencements continue to track well below the housing requirements of the population in New South Wales, Queensland, South Australia, Western Australia, and the Northern Territory,” the Housing Industry Association’s Harley Dale said.
“Granted, the lagged impact of lower interest rates combined with the competitive nature of the new home building sector should deliver some recovery in new home starts in mid-2013. However, any such improvement will be of insufficient strength and steam if policymakers continue to presume lower interest rates and a redirection of first home buyer assistance is all the action that is required.”
However, new home lending edged higher in May 2013, according to ABS housing finance figures.
In the month of May, the number of loans for the construction and purchase of new owner-occupied homes edged up by 0.6 per cent - 18.1 per cent higher than a year earlier.