The latest data from the Australian Bureau of Statistics show that despite a modest decline in new dwelling commencements in Q2, there was still a record number of 211,976 new homes started in 2014/2015, an increase of 16.9%.

‘That is a phenomenal result which caps three consecutive years of growth for new home building, only the fifth time in the last 60 years that this feat has been achieved,’ said HIA chief economist Harley Dale.

‘Through its broad reach the new home building sector has delivered a strong economic dividend to Australia during a period when many other sectors of the economy have struggled,’ he pointed out.

He also explained that while new dwelling commencements will fall in 2015/2016 they should remain elevated at what would still be the second highest level on record.

‘The key to the short term prospects for new home building is how much work in the pipeline is converted into actual activity and it’s not coming through as quickly now. An orderly decline in commencements in 2015/16 remains the most likely outcome,’ Dale added.

A breakdown of the figures shows that there were 53,314 dwellings commenced during Q2, a decline of 3.2% from an upwardly revised first quarter. Detached house commencements fell by 2.9% to 28,046, while ‘other dwelling’ commencements declined by 4.9% to 24,482.