Construction down under set for healthy year

The Australian construction industry is set for another healthy year of new home building, according to the latest HIA-RP Data Residential Land Report.

"Quarterly residential land sales held up at reasonably elevated levels throughout 2013/14, with a healthy June quarter greatly assisting the fiscal year result of 10 per cent growth," explains HIA Chief Economist Harley Dale. "In the June 2014 quarter itself residential land sales increased by 8.4 per cent, but were 4.5 per cent lower compared to their quarterly peak in June last year."

"Both capital city and regional land markets experienced higher turnover during the June 2014 quarter. Growth was stronger in the aggregate regional land markets – up 13.0 per cent compared to a 5.5 per cent lift for Australia’s six state capitals," he adds, noting that the geographical recovery in land sales is broadening.

"That is an encouraging sign for detached and semi-detached dwelling construction in 2014/15."