Dwelling Starts Hit Bottom

National dwelling commencements fell sharply again in the March quarter in the wake of the crisis of confidence that unfolded late last year as the global financial crisis escalated, according to Master Builders Australia.
Mr Peter Jones, Master Builders’ Chief Economist said, “This latest downward slide will only exacerbate an already chronic shortfall of housing, particularly in New South Wales.
“Despite the latest figures, low interest rates and government stimulus measures are working to kick-start a housing upswing that will also help to insulate the economy from the worst effects of the global recession.
With a recovery set to unfold, Master Builders is predicting a 25 per cent increase in annualised dwelling starts by this time next year as the investor-driven segment of the market joins in the upturn.
• The total number of dwellings commenced in the March quarter 2009, seasonally adjusted, fell by 4.0 per cent to 30,949, to be down by 22.5 per cent on the March quarter 2008.
• The number of private new houses commenced fell by 4.1 per cent to 21,428 units, down 16.3 per cent from the corresponding quarter a year ago.
• Commencements of other dwellings, the category that includes apartments, fell by 6.6 per cent in the March quarter to be down 34.9 per cent through the year.