Fewer new homes being built in 2011

Australian Bureau of Statistics figures released yesterday confirmed that residential building activity fell 0.6 per cent in the December 2010 quarter.

HIA economist Harley Dale said the weak data looked set to continue well into 2011. “In 2011, we look set to experience one of the weakest years for new home starts since the mid 1990s,” Mr Dale said.

“The Federal Government needs to act urgently to introduce short term stimulus measures to boost new housing activity and turnaround a housing slump that is shutting out first home buyers and aggravating financial stress felt by lower income rental households.”

In the December 2010 quarter, seasonally adjusted new residential work done fell by 2.3 per cent in New South Wales, 4.8 per cent in Queensland, 5.8 per cent in Tasmania, 0.4 per cent in the Northern Territory, and 10.4 per cent in the ACT.

Source: The Advisor