Further softening in home building and renovation activity over the past three months has improved the availability of construction trades, according to a new report.
Figures released this week from the HIA-Austral Bricks Trades Report for the June quarter 2006 confirm that trade availability is less of a constraint on supply, although a shortage of good quality trades is keeping trade rates high.
There are still considerable differences from state to state with improvements in Melbourne, Adelaide, regional New South Wales, regional Queensland and regional Western Australia only just offsetting a tightening in supply across the rest of Australia, according to building industry body, HIA.
HIA's Executive Director of Housing and Economics, Simon Tennent, said that Perth and regional Western Australia continue to face pressure with prices rising 3.5 per cent and 2.8 per cent respectively, and Sydney has seen a deterioration in availability, most likely as a result of many seeking work outside of the soft Sydney market.
"The future for trade prices and availability is positive due to the unfortunate side effects of higher interest rates," Mr Tennent said.
"The effect of a possible second interest rate rise before the end of the year will well and truly offset the $9 billion in tax cuts delivered in the recent budget, further dampening prospects for home builders and the thousands of small, medium and large businesses within the building material manufacturing and supply industries," he said.
The largest trade rate falls were in the trades of joinery (down 7.8 per cent), painting (down 5.0 per cent), plastering (down 4.5 per cent), bricklaying (down 3.8 per cent) and electrical trades (down 1.3 per cent).
