Current at: 18 September 2008
Housing starts fell in the Australian Capital Territory in the June 2008 quarter.
According to Australian Bureau of Statistics figures released today, total new home starts fell by 8.5 per cent in the June 2008 quarter to a level of 375.
HIA’s Acting Executive Director, ACT/Southern NSW, Ms Elizabeth Greenwood said housing starts also fell over the financial year, a disappointing result for the territory.
“Housing starts dropped away as the financial year progressed, hit hard by big hikes in interest rates and the general cost of living,” Ms Greenwood said.
Over 2007/08 dwelling starts fell by 10.1 per cent to a level of 2,083.
“While the yearly drop does follow a 24 per cent lift the previous year, this latest update is a soft one for new home construction,” Ms Greenwood said.
“The cyclical peak having come and gone for multi-unit starts has much to do with the weakness. Multi-unit starts declined by 19.7 per cent in 2007/08 compared to a 3.2 per cent fall for detached houses.”
“Without further interest rate cuts and without success in reducing structural barriers to affordable new housing, a sustainable recovery in starts over 2008/09 could prove difficult to achieve,” added Ms Greenwood.
On a state-by-state basis, the seasonally adjusted number of housing starts in the June 2008 quarter fell by 15.9 per cent in the Northern Territory, 9.4 per cent in New South Wales, 8.3 per cent in South Australia, 7.9 per cent in Victoria, and 1 per cent in Queensland. Starts increased by 7.4 per cent in Western Australia and 5.2 per cent in Tasmania.
