Construction remains flat down under

The preliminary data shows that a recovery in building activity of residential property in Australia failed to advance, which the Housing Industry Association hails as “less positive”.

 “In the aggregate, there was an increase in the value of construction work done during the September quarter of 2013. However... the value of residential building work done during the quarter was unchanged compared with the previous quarter,” explained HIA Economist, Geordan Murray.

The value of work done on multi-unit construction increased by 3.9 per cent in the September quarter of 2013 to a level 16.8 per cent above the level recorded in the September quarter of 2012.

“The flat result was a balancing act whereby a decline in work done in detached house building and home renovations was offset by a relatively strong increase in the value of work done on multi-unit dwellings,” added Murray.

In contrast, the value of work done on new detached homes declined by 1.6 per cent in the quarter to a level 3.6 per cent below the level in the September quarter a year ago. The value of work done on renovations declined by 3.1 per cent during the quarter to a level 3.3 per cent below the level recorded in the corresponding period last year.

“It is good to see activity in the multi-unit segment of the market picking up, however the positive impact this should have on Australia’s housing supply is being offset by declining levels of activity in the detached home segment.”

Geordan Murray continued: “In order to see Australia’s growing population housed in a way that maintains the standard of living the community expects, we need to see broad based increases in the level of activity across the new home building sector rather than just a reallocation of activity between the various segments of residential building.”