New home construction in WA grew in December quarter

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Although only three Australian jurisdictions had increases in new house starts in the December 2021 quarter, the number of homes under construction has continued to grow, according to the HIA.

WESTERN Australia is one of three Australian jurisdictions to have an increase in new house commencements in the December 2021 quarter.

Despite other Australian jurisdictions having declines in new house commencements in the December 2021 quarter, nationally the number of homes under construction continued to grow.

Following today’s release of Australian Bureau of Statistics (ABS) building activity data for the December 2021 quarter the Housing Industry Association (HIA) said in South Australia new house commencements had increased by 18.7 per cent, the Australian Capital Territory by 17.1 per cent and Western Australia by 12.6 per cent.

HIA economist Tom Devitt said nationally detached home commencements fell by 10.1 per cent in the final quarter of 2021 but the number of homes under construction continued to grow.

“The decline in the number of starts in the final quarter of 2021 reflects a slowing from the peak of the Homebuilder projects in the June 2021 quarter,’’ he said.

“It is not a reflection of a slowing market.

“Other indicators, such as building approvals, finance approvals and new home sales, continue to show a strong volume of work entering the pipeline.

Australian Bureau of Statistics starts and completions data, which the Housing Industry Association says shows the volume of work under construction has reached new highs.

“Construction time frames have increased significantly.’’

Mr Devitt said under normal circumstances, the surge of Homebuilder projects would have translated into an increase in completions from the June 2021 quarter.

But completions had barely risen even by the end of 2021.

“As a result, the volume of work under construction has reached new highs.’’

The declines in new house commencements in the December 2021 quarter were led by Tasmania (-34.6 per cent), Victoria (-20.9 per cent), New South Wales (-13.2 per cent), Queensland (-12.2 per cent) and the Northern Territory (-6.3 per cent).