Media Release
16 December 2008
Further Action Needed
to Arrest Slide in Dwelling Starts
Statement by Mr Peter Jones, Chief Economist
National dwelling commencements fell sharply in the September quarter and further rate cuts
are needed to kickstart the long-awaited recovery, according to Master Builders Australia, the
peak building and construction industry association.
Mr Peter Jones, MBA’s Chief Economist said, “The Reserve Bank’s decision to cut rates
aggressively over the past four months is to be applauded, but more action is needed to
attract home buyers and investors back into the market.
“Consumers are bearish as a result of economic uncertainty and the global financial crisis
and it will take time to turn the housing market around.
“The unfortunate thing is that dwelling activity has been suppressed for an extended period
leading to a chronic shortfall of housing.
“Master Builders welcomes recent initiatives by the Rudd Government designed to put a floor
under the housing market and urges state and local governments to play their role in
attempting to recession proof the Australian economy.
“Fast tracking approvals and removing blockages by local councils will be crucial to ensure
that Federal Government fiscal initiatives and the RBA’s aggressive rate cuts work in a timely
fashion to provide the stimulus needed to insulate the economy from the worst effects of the
global financial crisis.”
The total number of dwellings commenced in the September quarter 2008, seasonally
adjusted, fell by 10.7 per cent to 35,425, to be down by 9.1 per cent on the
September quarter 2007.
The number of private new houses commenced fell by 11.0 per cent to 23,868 units,
down 7.3 per cent from the corresponding quarter a year ago.
Commencements of other dwellings, the category that includes apartments, fell by
9.4 per cent in the September quarter to be down 12.1 per cent through the year.
For further information contact:
Peter Jones
Chief Economist
Office: 02 6202 8888
Mobile:
0403 440 838
NEWS 
