Residential construction figures post quarterly record

By |
Australia’s residential construction boom has pushed past another milestone, with figures showing dwelling commencements hit a quarterly record over the three months to the end of September 2015.

The figures from the Australian Bureau of Statistics show the September quarter saw work start on more than 55,000 dwellings across the nation, a 0.5% increase compared to the June quarter.

Over the 12 months to September 2015 commencements increased by almost 11% to more than 215,000.

“[The] update for national new home building is a stellar result not only for the residential construction industry, but for the wider economy,” Housing Industry Association (HIA) chief economist Harley Dale said.

“New dwelling commencements hit a quarterly record level of 55,532 in the September quarter last year. The historical high of 215,329 commencements for the year to September 2015 is 15% above the previous peak of just over 187,000 ‘starts’ in 1994,” Dr Dale said.

While national construction numbers hit a record high over the quarter, performance varied from state to state.

Over the quarter new dwelling commencements increased in New South Wales (2.4%), Western Australia (1.7%), South Australia (1.2%), the Northern Territory (17.4%), and the Australian Capital Territory (0.4%).

Commencements fell in Queensland (1%), Victoria (3.8 %) and Tasmania (20.7%).  

According to the HIA, the current housing boom, which has also seen housing approval records broken, has proved to be a pillar of the economy in recent years.

“Over recent years households and businesses have faced a barrage of negative chatter about below trend growth and downside risks to the economic outlook,” Dr Dale.

“Throughout this time new home construction has posted one of its longest upcycles in history – providing substantial support to Australia’s economic output and levels of employment.”

Industry forecasts have predicted the construction surge will begin to taper-off over the coming year, which Dr Dale said accelerates the need for reform on the taxation on housing.

The Federal Government is currently preparing a white paper on taxation reform, with speculation surrounding that process suggesting an increase to the GST and changes to negative gearing could be proposed.

Both of those options have been criticised by property lobby groups and professionals, who believe they would have a negative impact on the industry.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Top Suburbs : south brisbane , freshwater , scarborough , westmead , kariong

go back

Get help financing your investment

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

Why does  Aussie need your personal information?    How does Aussie keep your information secure?
Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a partly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945.
© 2016 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here