Residential construction down in first quarter

Early figures show that residential building work has dipped during the first half of 2013.

 

The preliminary data from the Australian Bureau of Statistics (ABS) shows that residential construction declined by one per cent in the first quarter, which was comprised of a 0.5 per cent fall in new homes and a four per cent decrease in renovation volumes.

 

However, compared to the same period a year ago, residential building figures rose by 2.1 per cent, with a strong 4.1 per cent increase of work done on new properties.

 

Housing Industry Association senior economist Shane Garrett suggested one reason for the slow growths.

 

"The general recovery in new home building activity shows that the succession of RBA rate cuts is having positive effects and that further reductions will help safeguard the revival, " he said.

 

Meanwhile, regions around Australia have been making changes to their First Home Owner Grant (FHOG) schemes, often opting to remove the funding for the purchase of established homes, and replacing it with the opportunity for cash to invest in either building a property or buying a new dwelling.

 

Queensland, New South Wales, South Australia, Victoria and Tasmania have all made these changes already, or announced their intention to do so, which could improve residential property building figures in future.