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ABS data shows new home building remains strong

by Staff Reporter8 minute read
The Adviser

Residential construction has continued to surge ahead even as overall construction activity has declined.

The value of construction done in June fell to $51.9 billion, according to new data from the Australian Bureau of Statistics.

That was down 0.6 per cent on the previous year and 1.2 per cent on the previous quarter.

However, residential construction rose to $13.4 billion, which marked a 9.6 per cent annual increase and 2.2 per cent quarterly increase.


New home building represented 1.6 per cent of that 2.2 per cent quarterly growth.

Housing Industry Association economist Diwa Hopkins said new home building was likely to make a positive contribution to GDP growth in next week’s national accounts figures.

“A closer look at these preliminary results shows that the detached house segment was the key driver of growth in residential building during the June 2014 quarter, compared with the March quarter when multi-unit building led the charge,” she said.

“These developments are largely in line with what we have been expecting of the current new home building cycle – that larger improvements in detached house building activity would follow in the wake of the previously strong growth experienced by the multi-unit segment of the market.”

[Related: Sydney property prices continue to defy gravity]

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