Construction work declines in September quarter

The latest ABS Construction Work Done release shows that the value of new residential construction continues to see the strongest pipeline on record flowing through to home owners to aid affordability. This is despite a drop in the September 2015 quarter.

While the value of new residential construction work done declined nationally in seasonal terms by 3 per cent for the September 2015 quarter, it was 10.6 per cent above the same quarter in 2014 and up 11.8 per cent over a 12 month period.

The Property Council of Australia’s Executive Director Residential Nick Proud said “We are seeing the value of residential construction work done continue to provide record levels of activity and new homes delivered.

“These numbers show the activity underway is still very strong, however the drop over the quarter posted across the country further indicates that a national peak of activity has been reached.

“States such as Queensland and South Australia, which posted declines in the value of work done in the June quarter of 10.2 per cent and 16.2 per cent respectively, returned to positive increases in September.

“Current record levels of housing construction are only now taking the edge off prices, however one strong year of activity will not correct a decade of undersupply.

“The figures show good annualised levels of activity is flowing through the residential industry and the industry is in the midst of a strong patch, however supply side efficiencies will be needed to support long term activity.

“Poor housing affordability impacts families and holds back the productivity of our cities.

“It is the role of governments to continue to focus on supply side efficiencies in land release, improving development assessment processes and reform of inefficient taxes such as stamp duty to create prosperity, jobs and strong communities.”

Media contact:  Fiona Benson  |  M  0407 294 620  |   E  [email protected]