Media Release
15 December 2009
Dwelling Starts Begin to Lift
Statement by Mr Peter Jones, Chief Economist
In line with the forward indicators, national
dwelling commencements rose in the
September quarter on the back of previously low interest rates and government
stimulus measures,
according to Master Builders Australia, the peak building and
construction industry association.
Mr Peter Jones, Master Builders’
Chief Economist said, “After almost five years of
chronic underbuilding the residential sector finally looks set
for an upturn and though
well overdue, the latest figures are encouraging.”
“We can look forward to a bounceback in housing commencements in 2009-10,
offsetting the substantial decline that occurred in financial year 2008-09 in the wake of
the global financial crisis.”
“Beyond that, there are questions over the sustainability of the upturn.”
He said, “Tight lending requirements enforced by the banks are
affecting investor-
driven unit and apartment builders, as is the looming fall back associated with the end
of the First Home Owner ‘boost’ scheme and speculation about higher interest rates.”
“Master Builders believes the Reserve Bank needs to keep interest rates low to ensure
recovery in the interest-rate-sensitive residential building sector becomes entrenched.”
“Australia needs a long and strong housing upturn if it is to overcome the massive
shortfall in dwellings that has developed.”
“Unless governments work to address supply-constraining factors such as developer
charges, the level of residential building is likely to fall well short of the annual 200,000
completions required to solve the problem and meet demand.”
The total number of dwelling units commenced in the September quarter 2009,
seasonally adjusted, rose by 9.4 per cent to 34,082, to be down by 6.0 per cent
on the September quarter 2008.
The number of private new houses commenced rose by 8.1 per cent to 24,570,
up 3.4 per cent from the corresponding quarter a year ago.
Commencements of other dwellings, the category that includes apartments,
rose by 9.0 per cent in the September quarter to be down 32.5 per cent through
the year.
For further information contact:
Peter Jones, Chief Economist, Office: 02 6202 8888, Mobile: 0403 440 838
NEWS 
