This article is from the Australian Property Journal archive
THE value of building work done across the country fell during the March quarter – largely ahead of the COVID-19 pandemic – despite an increase in dwelling starts.
According to the Australian Bureau of Statistics, the value of work done in three month period fell 0.5% on the previous quarter, seasonally adjusted, to $29.194 billion after a 3.3% drop in the December quarter.
New residential building slipped 1.0% to just under $15.2 billion, down 12.8% annually, while renovations and extensions increased 2.1% during the quarter to $2.334 billion for a 3.1% uplift year on year.
Non-residential building dipped 0.3% to $11.66 billion, and is 0.6% lower over 12 months.
While the number of dwelling commencements during the quarter grew 3.8% to 44,434 the December quarter had seen 4.5% growth.
New detached house commencements grew 1.2% to 25,229, down 10.7% annually, and apartments and townhouses grew 7.7% to 18,521, up 13.6% year on year.
Falls in activity will be more starkly reflected in the ABS dataset for the June quarter.
Official data for May showed apartment approvals diving by a sharp 34.6% to an 11-year low, and the total number of dwellings approved fell 16.4%.
According to the latest Australian Industry Group/Housing Industry Association Australian Performance of Construction Index, activity slowed in June, but lower employment levels, new orders uncertainty around future immigration levels suggest an ongoing wait for recovery. The result followed April’s plunge to record lows and poor conditions in May.
