Property Council: Figures are well below the levels needed to meet the country's housing targets
The total number of dwellings commenced in Australia rose by 0.5% to 39,715 in the March quarter, according to the latest figures from the Australian Bureau of Statistics (ABS).
New private sector houses drove the increase, rising 4.8% to 25,072 dwellings. However, this figure has fallen 6.7% since March 2023.
New private sector other residential commencements fell 3.1% to 14,071 dwellings, following a rise of 3.3% in the December quarter and are down 21.5% year-on-year.
In trend terms, 46,864 dwellings were completed in the March quarter. Private new houses accounted for 30,992 dwellings, a 3.7% increase from December and a 14.6% rise since March 2023. Private new other residential completions rose 5.6% from December to 14,844 dwellings.
The latest ABS data on building activity also showed a 3.5% decrease in the value of total building work done to $33.4 billion in the March quarter. The decrease was driven by non-residential building, which fell 6.8% to $13.8 billion, following a 6.7% increase in the December quarter.
Work done on new residential building fell 0.8% to $16.9 billion and is down 1.2% year-on-year. Work done on alterations and additions to residential buildings fell 2.6% to $2.7 billion.
Property Council of Australia group executive for policy and advocacy Matthew Kandelaars (pictured above) said low home completion data is “a canary in the coal mine” for the nation’s 1.2 million new homes target, which took effect this month.
“Today’s figures reveal the extent of the challenge and just how much we need to lift our game to hit our targets,” Kandelaars said. “If housing supply stays this low, we will only manage to build around 830,000 homes over the next five years, leaving us 370,000 short.
“If we don’t start increasing the pace, we will miss what should be an achievable target by a significant margin. Governments across the country need to utilise every possible measure to assist the industry in delivering the supply of new homes we so desperately need.”
Kandelaars said that the target of 1.2 million homes will only be achieved by applying increasing amounts of federal funding, state resources, and a “yes” mindset to reach that goal.
“It’s time to properly address our housing crisis with the determination and speed that matches the urgent need to provide more housing for Australians,” he said.
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