Has australia's house building peaked?

Photo credit: 8LettersUK

Australia's house building has peaked, according to a report from the Housing Industry Association. The HIA report reveals that during the three months to Septembe 2014, completed work totalled $13.4 billion in value, 8.6 per cent up year-on-year but 1.6 per cent down on the previous quarter

Total work done on new dwelling construction declined by 1.8 per cent during the quarter, but was still some 9.5 per cent higher than the same period of the previous year. Renovations work done was unchanged during the September 2014 quarter and was 2.8 per cent higher than a year earlier.

"These figures provide further evidence that the upturn in new home building activity may have peaked during 2014," comments HIA Senior Economist, Shane Garrett.

"Australia needs to build about 180,000 homes per year over the longer term to meet its requirements," explains Garrett. "We have only recently reached this threshold, and the fact that we are moving below it again bodes poorly for the country’s housing prospects."

"We also concerned to see that the renovations market has not made any headway over the most recent quarter," he adds. "This is an area of residential construction that has endured a slump over the past few years."

"We are in danger of falling behind in the quest to provide enough housing for future generations of Australians,” remarks Garrett. "Several factors act as major obstacles to the ensuring sufficient levels of new home building. It is vital that issues like land supply bottlenecks, planning delays and excessive taxation are dealt with as a matter of urgency."