Home Build Starts Inch Up

Housing starts inched up in the March quarter, driven by a 4.8 per cent rise in private houses, the latest research showed as a key industry lobby group pushed for more action on reforms.

According to ABS data, total home commencements rose 0.5 per cent to 39,715 homes with new private sector house starts up 4.8 per cent to 25,072 homes.

House starts have, however, fallen 6.7 per cent since March, 2023.

New private sector other residential starts fell 3.1 per cent to 14,071 homes, Meanwhile, new private sector other residential starts (apartments, townhouses, and the like) fell 3.1 per cent to 14,071 homes after a 3.3 per cent rise in the December quarter. They are down 21.5 per cent for the year.

The value of total building work done during the quarter compared to the previous quarter fell 3.5 per cent to $33.4 billion.

The number of homes completed during the quarter was down 9.51 per cent compared to the previous quarter, and fell 8.1 per cent year-on-year.

Private sector homes declined by 16.9 per cent compared to the previous quarter, and were down 8.8 per cent year-on-year, while other homes rose 11.2 per cent for the quarter but dropped 8.2 per cent annually.

The value of total building work done fell 3.5 per cent to $33.4 billion in the March quarter, in seasonally adjusted terms.

The decrease was driven by non-residential building, which decreased by 6.8 per cent to $13.8 billion and follows an increase of 6.7 per cent in the December quarter.

Work done on new residential building fell 0.8 per cent to $16.9 billion and is 1.2 per cent lower for the year. Work done on alterations and additions to residential buildings fell 2.6 per cent to $2.7 billion.

▲ Commencements in NSW have fallen off a cliff, according to the UTA.

In NSW, housing starts declined to 43,136, down from 49,206 in the previous 12 months to March, 2023.

Urban Taskforce Australia chief executive Tom Forrest said the data showed that the impact of rising construction costs along with ongoing uncertainty and delay in finalising planning reforms was leading to 12-month housing starts in NSW “falling off a cliff”.

“The strong message from [the] housing data to the Minns Government is that it has to go harder, faster and bolder in terms of planning and housing reforms in order to inject more certainty and confidence into the property development and construction sector,” Forrest said.

“We need to see more applications, more approvals, more new home commencements and more dwelling completions. Right now, all the metrics are heading south.”