The latest Australian Bureau of Statistics figures reveal that housing starts fell by 4 per cent in March 2009 to 30,949, a figure that is 22.5 per cent lower than it was 12 months’ ago. But the housing and construction industries are claiming figures are now at rock bottom, predicting that Australia is about to enter an upswing in housing starts.
With a recovery set to unfold, Master Builders Australia is predicting a 25 per cent increase in annualised dwelling starts by this time next year as the investor-driven segment of the market joins in the upturn.
“Despite the latest figures, low interest rates and government stimulus measures are working to kick-start a housing upswing that will also help to insulate the economy from the worst effects of the global recession,” Peter Jones, Master Builders’ chief economist, said
A less bullish Housing Industry Association (HIA) is forecasting a 15 per cent boost to starts by the December quarter. But, in spite of its prediction, senior economist Ben Phillips said he expects starts for 2009 to remain at an eight-year low and well short of the demands of record population growth.
Building approvals, housing finance and first home buyer grant numbers have “turned the corner” for the industry, Phillips said, with numbers and are “growing strongly” in response to government action.
“The fact that starts dropped so far over the past 12 months highlights just how important the first home buyer stimulus is in 2009 and just how urgent the need is to implement the plan to construct new public and community housing dwellings, which will generate a multiplier effect for private dwellings along the way,” he said.
Detached house starts fell by 4.2 per cent to 21,757 in the March 2009 quarter. Multi-unit starts dropped by 3.4 per cent to 9,192.
The number of housing starts in the March 2009 quarter fell by 7.2 per cent in New South Wales, 6 per cent in Queensland, 16 per cent in Tasmania, 0.9 per cent in the Australian Capital Territory and 46.3 per cent in the Northern Territory. Starts increased by 3.5 per cent in South Australia, 5.8 per cent in Western Australia, and 0.1 per cent in Victoria.
