The Housing Industry Association (HIA) says ABS figures released today show a new home building recovery that was proceeding very slowly.
HIA chief economist, Dr Harley Dale, says new residential building work completed grew by less than 1 per cent in the March 2010 quarter, highlighting the potential constraining influence that a lack of available skilled labour was exerting on 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," he says.
"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.
"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."
The 0.8 per cent increase in new residential building work done in the March 2010 quarter reflected a 4.6 per cent increase in other dwellings, an outcome influenced by the Social Housing Initiative, and a 0.8 per cent decline in work done on detached houses.
The volume of work done on major alterations and additions rose for a third consecutive quarter in March 2010, up by 1.6 per cent, although the rate of growth in recovery has slowed in each successive quarter.
In the March 2010 quarter (seasonally adjusted) new residential work done increased by 4.4 per cent in NSW, 2.3 per cent in VIC, 4.2 per cent in SA and 5 per cent in TAS.
New residential work done fell by 5.9 per cent in QLD, 5.3 per cent in WA and 5.1 per cent in the ACT. In original terms new residential work done was 36 per cent higher in the NT compared to the March quarter of last year.
