ABS figures released yesterday showed new housing activity in the June 2011 quarter falling while renovation activity continues to grow.
Overall, residential building work done fell by 4.1 per cent to an annualised level of $45.3 billion in the June 2011 quarter.
New residential building work done fell by 5.3 per cent in the June 2011 quarter reflecting a 2.0 per cent decline in detached housing and a drop of 11.0 per cent in 'Other dwellings
However, the volume of major alterations and additions work done, which accounts for around 20 per cent of total renovations activity, increased by 2.6 per cent.
Housing Industry Association (HIA) chief economist, Dr Harley Dale, said yesterday: "Renovations activity, both in terms of major jobs which we received an update on today, and smaller jobs valued at less than $10,000, is the source of growth in the housing industry in 2011."
"This situation reflects an inherently more cautious household sector post the GFC, together with the excessive taxation of new housing and very high stamp duty incurred when moving home."
In the June 2011 quarter, seasonally adjusted new residential building work done fell by 13.7 per cent in New South Wales, 9.6 per cent in Western Australia, 6.9 per cent in Queensland, 6.5 per cent in the Australian Capital Territory, and 2.2 per cent in Tasmania.
New residential building work done increased by 7.7 per cent in South Australia and by 0.8 per cent in Victoria.
In original terms new residential building work done in the Northern Territory in the June 2011 quarter was down by 34.5 per cent when compared to the June 2010 quarter.??
