Login
ISCOVER
Staff Reporter
Residential building activity contracted significantly in the March quarter, according to new research.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
Data from the Australian Bureau of Statistics found the total value of residential building work done fell by 1.9 per cent in the March quarter with new dwellings down by 1.2 per cent and renovations down by a sizeable 5.5 per cent.
"New residential building work done has now fallen for four consecutive quarters, while renovations work done has fallen for three consecutive quarters," Housing Industry Association senior economist Andrew Harvey claimed.
"Combined with leading indicators which show further weakness ahead, there is no doubt that the Australian home building industry is in recession."
According to Mr Harvey, as the residential building industry continues to contract, Australia will see real consequences for jobs, small businesses, the supply of new housing and rental costs.
"Governments can no longer ignore the negative impacts on employment, housing stress and Australia's economy," he said.
Comparing the March 2012 quarter with the March 2011 quarter, new housing work done is down by 8.7 per cent while renovations (alterations and additions) activity is down by 5.5 per cent.
