Media Release
17 March 2010
Upswing in Dwelling Starts
Statement by Mr Peter Jones, Chief Economist
National dwelling commencements rose strongly in the December quarter as the effect
of low interest rates and government stimulus measures begins to flow through into the
pipeline of work,
according to Master Builders Australia, the peak building and
construction industry association.
Mr Peter Jones, Master Builders’
Chief Economist said, “Residential building is finally
moving into an upturn phase after five years of chronic underbuilding made worse in
recent times by the global financial crisis and economic downturn.”
“The
predicted bounceback in housing commencements
this year will offset a
ratchet
down in activity that occurred 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 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.”
“Governments need to address supply-constraining factors such as developer charges,
otherwise the upswing in residential building will fall well short of what’s needed.”
“What’s needed is three or four years building 200,000 plus dwellings
per annum to
firstly meet ongoing demand from a growing population and to also make inroads into
the massive deficit of housing that has already accrued through underbuilding.”
The total number of dwelling units commenced in the December quarter 2009,
seasonally adjusted, rose by 15.1 per cent to 40,022 to be up by 26 per cent on
the global financial crisis affected December quarter 2008.
The number of private new houses commenced rose
by 13.4
per cent to
28,343, up 28.3 per cent from the corresponding quarter a year ago.
Commencements of other dwellings, the category that includes apartments,
rose by 18.9 per cent in the December quarter to be up 7.2 per cent through the
year.
For further information contact:
Peter Jones, Chief Economist, Mobile: 0403 440 838
NEWS 
