Released 20 June 2012



Australian Bureau of Statistics (ABS) Dwelling Commencements fell 12.6 per cent in the March 2012 quarter, highlighting the urgency of investment and reform to boost new housing supply, according to Housing Industry Association (HIA).

The fall reflected a 7.7 per cent decline in detached houses and a larger 21.1 per cent drop in 'other dwellings'.

The number of seasonally adjusted dwelling commencements fell in six of the eight states and territories in the March 2012 quarter.

Dwelling commencements fell by 37.4 per cent in New South Wales, 8.3 per cent in Victoria, 4.8 per cent in Western Australia, 15.8 per cent in Tasmania, 0.4 per cent in the Northern Territory, and 41.2 per cent in the ACT.

HIA Chief Economist Harley Dale said dwelling commencements have been declining since the middle of 2010 and are currently running at an annualised level of 122,492.

"Excluding the new home building recession around the GST, this is the lowest level for dwelling commencements since the September quarter of 1996. Furthermore, it is a weaker outcome than was evident at any time during the GFC.

"Carve through the current argy bargy about how strong or weak the Australian economy is and you find that new housing is unequivocally weak," he said.

"That situation has significant implications for the wider domestic economy in 2012."

Dale noted that housing is shelter, an economic and social necessity.

"Recent encouraging moves by some state governments notwithstanding, the continued deterioration in new housing supply is a poor indictment on Australia's policy makers.

"Investment and reform needs to happen now and the lack of action is a conspicuous and damaging hole in Australia's policy focus," he said.