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New home construction in Australia reaches record high

Home construction in Australia bounced back in the second quarter of 2015 but overall all home owners are now paying more in property tax, new figures show.

The number of detached houses beginning construction held steady at a relatively high level, while a rebound in multi-unit dwelling commencements provided the overall lift to reach the highest level for any quarter on record, according to the figures from the Australian Bureau of Statistics.

The figures show there was a 0.7% increase in detached home commencements while others, predominantly multi-unit dwellings, jumped by 19.2%, driven by a surge in the state of Victoria. The state recorded over 9,000 multi-unit commencements, which is a record high.

In the 12 months to March, almost 205,000 new dwellings were commenced, the first time the 200,000 mark has been breached. According to the Housing Industry Association (HIA) leading indicators suggests that the number of commencements in the June quarter will be even higher.

A breakdown of the figures show that new home starts increased by 1.9% in New South Wales, by 18.8% in Victoria, 20.9% in Queensland and by 12% in the Northern Territory. But elsewhere, there were sizable declines, most notably in South Australia where the strong result in the December quarter was reversed by an 18% fall. They were down 4.8% in Western Australia and 14.7% in Tasmania.

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