Work completed on Australia's tens of thousands of residential building sites has continued to slow down, with the value of new housing completed in the December 2005 quarter falling 5.4 per cent to $7.1 billion.
Figures released this week by the Australian Bureau of Statistics also show that work done in the alterations and additions market fell by a rather more moderate 1.8 per cent to $1.37 billion.
Building industry body, HIA, said that while the figures are in line with forecasts of a moderation in activity through to the second half of 2006, it is little consolation for those thousands of businesses who are currently being squeezed by the slowdown.
"New housing completions are at their lowest level since 2002, and the current spike in petrol prices is placing strain on household budgets, thus keeping a lid on home renovation activity," said HIA's Executive Director of Housing and Economics, Simon Tennent.
"Display home traffic numbers are high and sentiment towards housing remains encouraging, but the yawning gap between household borrowing power and average new home prices will ensure that the slowdown still has sometime to run," Mr Tennent said.
"If there are any positives to take away from today's figures, the value of residential work still in the construction phase is high, remaining stable at around $14.7 billion dollars or about 7 months worth of work."
"Looking ahead, a continuation of a stable interest rate environment and increasing pressure on rental markets should see the value of new home building done across the nation contribute to economic growth in the second half of 2006," he added.
Across the country, new residential building activity fell by 27.7 per cent in Tasmania, followed by 12.8 per cent in the ACT, 11.1 per cent in New South Wales, 7.1 per cent in South Australia, 3.9 per cent in Victoria, and was down by 2.4 per cent in Queensland. Activity increased in Western Australia over the quarter, up 1.8 per cent.
