Sharp drop in new home building in the ACT

Sharp drop in new home building in the ACTThe latest ABS Building Activity data released today shows the Australian Capital Territory continues to miss out the record high levels of new residential construction being experienced nationally. The number of new residential dwelling commencements in the ACT plummeted by 31.8 per cent year for the December 2014 quarter seasonally adjusted, a much sharper decline than the 10.6 per cent drop off nationally. Year on year the fall in new housing starts in the ACT was less pronounced, falling by 9.5 per cent to a total of 4,066 commencements in 2014.The bright point out of the data was a 12.9 per cent jump in the value of new residential building work for the full year ending December 2014, despite a 5 per cent fall for the quarter, seasonally adjusted. Nationwide the value of new residential construction and number of building starts recorded increases of 11.6 per cent and 17.9 per cent respectively in the year to December, seasonally adjusted.The Property Council of Australia’s ACT Executive Director Catherine Carter said the good results for new residential building activity nationally would provide dividends in terms of housing affordability but ACT risked missing out.”We are seeing strong increases in the value and number of starts for new residential construction work nationally, but this activity is declining in the ACT,” Ms Carter said.”The more new homes we get onto the market, the more the pressure will come off house prices.”The ACT Government has a unique opportunity at present to amend planning rules to enable the construction of new dual occupancy dwellings across the ACT, in addition to what is allowed on ‘Mr Fluffy’ blocks. New dual occupancies on existing blocks will enable people to age in place in their suburb, and to remain close to shops, medical facilities, friends and existing infrastructure. “The key going forward is to have this increase in new supply maintain sufficiently high levels across the board for the next several years. “This will only be achieved if governments at all levels commit to implementing micro-economic reform, particularly in the areas of tax and planning, to unlock the growth potential of the property and construction industries.”Media: Catherine Carter |M 0412 330 079|P 02 6248 6602