The ABS has just released dwelling commencement data for the June quarter, which registered a 4.6% (1,497) increase in the number of dwellings that commenced construction over the quarter.
Below is a time series chart showing the split at the national level:
The construction of units & apartments drove the lift, increasing by 18% (2,022) over the quarter. By contrast, the construction of houses fell by -2% (-464) over the same period.
New South Wales, which has for a long-time dragged down construction nationally, drove the increase, with commencements increasing there by 25.9% (1,494) over the quarter. Queensland, which has also experienced sluggish construction of late, also recorded a solid 8.1% (516) increase in commencements.
Overall, it’s an encouraging result, which will hopefully build over the coming year following the New South Wales and Queensland Government’s changes to the first home owners grant.
Twitter: Leith van Onselen. Leith is the Chief Economist of Macro Investor, Australia’s independent investment newsletter covering trades, stocks, property and yield. Click for a free 21 day trial.
