Yesterday’s consumer price index release from the ABS posted the first ever fall in the “New dwelling purchase by owner-occupiers” sub-component, which measures the cost of building a home (excluding the land):
According to the ABS, this sub-index fell by 0.17% in the September quarter and by 0.08% year-on-year. This was the first annual decline recorded in the series’ history (since its inception in June 1998).
Looking at the five major capitals, you can see that the index is being dragged down by Melbourne and Brisbane, where new home construction costs fell by 1.5% and 0.8% respectively; although growth in Sydney (+0.8%) and Adelaide (+0.3%) is also weak:
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