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Home construction and renovation falls in Australia in first quarter of 2012

Property Wire
Home construction and renovation falls in Australia in first quarter of 2012 - Australia - construction - renovation


Preliminary figures published by the Australian Bureau of Statistics provide a disappointing update for residential construction in the March 2012 quarter, according to the Housing Industry Association, the voice of the country’s residential building industry.



The total value of residential building work done fell by 2% in the March quarter with new dwellings down by 1.4% and renovations down by a more sizeable 5.3%.

‘The result is a concern as it suggests not only that dwelling investment will again detract from GDP growth in the March 2012 quarter, but also that the renovations side of the residential building industry is now also facing headwinds,’ said HIA senior economist, Andrew Harvey.

In annual terms, major renovations (alterations and additions) activity is down by 5.1% over the year, while new housing is down by 8.8%.

‘Renovations have been the positive news story for the residential building industry with the value of total work holding up relatively well, but there are now mounting signs that this side of the industry is slowing,’ explained Harvey.


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