Building activity hits 20-year high

Building activity hits 20-year high

Posted on Thursday, October 16 2014 at 10:36 AM

The Housing Industry Association (HIA) says the home-building recovery has brought activity to its highest level in 20 years based on recent Australian Bureau of Statistics data.

With home starts topping 180,000, Shane
Garrick, chief economist at HIA, has welcomed the result.

“Back in early 2012 when activity was so low,
the prospect of breaking through 180,000 starts within a couple of years was
beyond almost everybody’s most optimistic expectations.”

Despite the record outcome, Garrick says it’s
disappointing the same sort of figures didn’t translate across all housing

“The multi-unit dwelling segment saw a sharp
fall during the second quarter of this year, with detached house building also
nudging down a little.

“On the renovation side, the volume of work
done also fell, with a three per cent reduction in activity during the June
2014 quarter.”

HIA analysis indicated new housing starts
will need to reach around 186,000 annually between now and 2050 to meet

“Even in such a strong upturn, we are still short of this requirement today,” Garrick says.

“This is a stark illustration of the serious
supply-side issues which will need addressing.”

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