Australia enjoys "positive year" for new housing

Australia’s new home sector has enjoyed a “positive year”, according to figures from ABS.

The data shows a “modest increase” in housing starts in the year to 2013 after two consecutive annual declines, which the Housing Industry Association has welcomed as an “encouraging recovery”.

 “Dwelling commencements (housing starts) increased by 11.2 per cent in 2012/13, an encouraging recovery following declines of 5.8 per cent and 11.1 per cent in 2010/11 and 2011/12, respectively," said HIA Chief Economist, Dr Harley Dale.

“That is a healthy figure by recent standards and certainly a promising first round recovery for new home building.”

“What is less encouraging is that all the growth occurred in the first half of the year,” he added, “following which housing starts declined in the March 2013 quarter and held steady in June. We now need to see an acceleration of growth in 2013/14 reflective of a broad-based recovery in housing starts. That outcome will require further upward momentum in New South Wales and Western Australia, together with a re-emergence of sustained growth in other markets.”