This article is from the Australian Property Journal archive
2009 was the worst year for the construction of new private sector homes since 1996, said the Urban Taskforce in response to the latest Australia Bureau of Statistics data.
CEO Aaron Gadiel said private sector house construction in NSW is now at its lowest in ABS record-keeping history and Queensland suffering its worst year since 1987.
In seasonally adjusted terms, the number of new dwellings commenced in December 2009 increased by 15.1% across Australia compared with the previous quarter – by 16.5% in NSW, 15.6% in Victoria and 13.4% in Queensland.
Gadiel said the increases are welcome given the private sector was only responsible for work commencing on 132,000 new homes in 2009, compared with a previous 10 year average of 153,000 homes.
“NSW’s private sector produced 24,000 homes in 2009, less than half Victoria’s 45,000 homes and even less than Queensland’s 27,000 homes. In the last three months of 2009, private sector home construction was up across Australia, when compared with the same period in 2008.
“Australia-wide it was up by 22.5% – 21.2% in NSW, 29.8% in Victoria and 20.7% in Queensland. However, it’s clear that private sector apartment and townhouse construction is still in serious trouble in NSW, while it’s been growing in Victoria and Queensland,” he added.
In the December quarter, NSW private sector construction of higher density homes was 10.3% lower than in the same period in 2008. In the last quarter’s figure is 29.1% lower than the same figure for same quarter in 2006.
Gadiel pointed out that this is NSW’s lowest level of private sector apartment and townhouse construction for this quarter since 1987.
In Victoria, there was a 7.8% increase in construction, when compared to the same quarter last year, producing 11,000 private sector apartments and townhouses in 2009, compared to NSW’s 8,000.
“Victoria is experiencing its highest levels of private sector apartment and townhouse construction since 2002.
“Things are looking better in Queensland too, where private sector apartment and townhouse construction has surged by 27.1%, when comparing the 2009 December quarter with the same period in the previous year,”
Overall, 2009 was not a great year for this type of development in Queensland – with work starting on only 7,000 such homes.
Gadiel said that the Australian housing market was undersupplied to the tune of 200,000 homes.
“NSW’s current shortfall in housing is approaching 100,000 homes and, on current projections, will be near to 175,000 homes within four years.
“We are in the midst of a major development crisis. Recent interest rate increases have also reduced the viability of development across Australia,” he concluded.
Australian Property Journal
