Figures show NSW is fighting back

Figures show NSW is fighting back

Posted on Monday, October 20 2014 at 12:45 PM

Figures released by the Australian Bureau of Statistics (ABS) today show a weaker June 2014 quarter but a strong fiscal year for new dwelling commencements in New South Wales, Housing Industry Association (HIA) executive director David Bare says.

“Despite a pull-back in new dwelling
commencements in the June 2014 quarter, the 2013/14 fiscal year was still the
strongest NSW had experienced in a decade,” he says. “Last year NSW started
46,715 dwellings, comprising 20,999 detached houses (up 16.1 per cent) and
25,716 multi units (up16.2 per cent).

“The strong result for 2013/14 confirms the
important role new home building is playing in an economic revival for NSW,”
Bare explains.

“After so many years of underbuilding it will
be important to see further growth in new residential construction in 2014/15.
That will require further policy support from the NSW Government to complement
the current low interest rate environment.”

Total seasonally
adjusted dwelling commencements amounted to 10,874 in NSW in the June 2014
quarter, a decline of 12.3 per cent on the previous three-month period.
Detached house commencements fell by 6.0 per cent in the June 2014 quarter,
implying a drop of 17.7 per cent in multi units.

NSW is a new leader at
the top of Australia’s economic performance ranking, according to CommSec,
which analyses key indictors (economic growth, retail spending, equipment
investment, unemployment, construction work done, population growth, housing
finance and dwelling commencements) to find out how the Australian states and
territories are doing in comparison with each other. NSW is top of rankings on
population growth and dwelling starts and second on retail trade, business
investment and unemployment. The state is also third on housing finance and
fourth on overall construction work and economic growth.

According to CommSec’s figures, in four of the
states and territories – Western Australia,
Victoria, NSW and the ACT – trend housing finance commitments are above decade
averages. And in six of the eight economies, trend commitments in August were
above year-ago levels in all states and territories.

The Property
Council of Australia’s NSW executive director Glenn Byres says: “The economic
renaissance in NSW is powerful and has been underpinned by a healthy home construction

“A mix of
well-targeted incentives, infrastructure investment, lower borrowing costs and
favourable market conditions has helped NSW achieve its best housing starts in
a decade.”

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