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ISCOVER
By: Staff Reporter
The level of residential building activity improved throughout the March quarter, albeit only slightly.
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According to data released yesterday by the ABS, residential building work grew by less than 1 per cent.
Housing Industry Association chief economist Harley Dale said that a lack of skilled labour was slowing the pace of recovery.
“New residential work done is only 1.5 per cent higher now than it was at the trough back in mid 2009.
The value of work in the pipeline has been accumulating in recent quarters but actual work done is only grinding higher, and indeed fell at the end of last year. Meanwhile the value of work approved but not yet commenced remains at historically very high levels,” Mr Dale said.
"The meagre 0.8 per cent increase in new residential work done in the March 2010 quarter, which included a decline in work done on detached houses, is a reminder of the importance of ensuring sufficient skilled labour is available to keep the wheels of recovery turning.”
“Furthermore, the extremely high value of work approved but not commenced in recent quarters highlights the risk that actual construction levels will continue to disappoint.”
Residential work done, on a seasonally adjusted basis, increased by 4.4 per cent in New South Wales, 2.3 per cent in Victoria, 4.2 per cent in South Australia, and 5 per cent in Tasmania.
Meanwhile, residential work done fell by 5.9 per cent in Queensland, 5.3 per cent in Western Australia, and 5.1 per cent in the Australian Capital Territory.
