New residential construction continues to decline nationally: ABS

According to the Australian Bureau of Statistics latest figures, there were 49,017 dwelling constructions that commenced during the March quarter, reflecting a quarter-on-quarter loss of 6.5 per cent. 

This latest figure is also 6.7 per cent smaller than what was reported during the March quarter last year. 

This fall was heavily driven by decline in houses. According to the data, there were 29,672 houses commenced in the three-month period – an 11.6 per cent dump from December and a 16.9 per cent loss compared to the same time in 2021. 

Other residential buildings (17,538), such as apartments and town houses, fell by 1.1 per cent over the quarter, but increased by 12.9 per cent year-on-year. 

The latest figures marked the third consecutive quarterly drop in dwelling commencements, following June 2021’s record peak of 67,620.  

The second-highest quarterly figure for new commencements in eight years was in March 2016, at 61,420.  

However, by the end of the September 2021 quarter, dwelling commencements fell by 16.3 per cent to reach 56,617, ending nine months of perpetual growth.

This data followed previous reports made by ABS of declines in construction approvals. 

In January, figures were reported to be at their lowest in 18 months. The following month saw confirmed constructions rising by 43.5 per cent before dipping during March, collapsing by almost one-fifth (18.5 per cent). 

In April, approvals dropped by 2.4 per cent, which was followed by another loss of 1.5 per cent over May. 

Homes under construction continue to balloon

These latest ABS figures also reflected that the number of dwellings currently under construction in Australia has increased, reaching a record figure of 240,065 over the March quarter. 

According to the ABS, this latest result is a 2.9 per cent bump from December’s sum of 233,274, which itself was previously the record figure. 

This increase was said to be driven by houses, which increased by 101,240 between the March 2021 and March 2022 quarters. 

Further, the ABS’ statistics also reflected that, since the September 2020 quarter, the number of houses under construction has consistently grown, increasing by almost 31 per cent during the last 18 months. 

Yet, values have trended in a remotely similar fashion over this period. According to these last figures, the total value of new residential buildings ($15.7 million) has fallen by 1 per cent in the year to March 2022. 

In September 2020, this figure was roughly $15.2 million. 

[Related: Home-buying ambitions continue to sink: CBA]