The total number of dwellings commenced in Australia saw a substantial increase, rising 4.6% to 43,247 units in the September quarter, ABS reported.
This rise, predominantly in the private sector, signals a robust period of activity within the construction industry. New private sector house commencements climbed by 5.2% to 27,651 dwellings, while commencements for other residential types grew by 3.8% to 14,677 dwellings.
The boost in housing commencements is reflected in the seasonally adjusted increase across various types of residential building. The expansion was particularly notable in new private sector houses, following a previous rise of 3.7% in the June quarter.
Meanwhile, other types of residential commencements recovered from a prior decline, suggesting a broader recovery in the housing construction sector.
By the end of the quarter, 220,265 dwellings were under construction, with 87,672 being new houses. Completed dwellings reached 44,884, with private new houses making up 28,677 of these.
Despite a slight rise in completions, other residential types saw a decrease, which could impact future housing supply.
According to the latest ABS figures, the value of total building work done slightly increased by 0.3% to $38.5 billion, driven largely by a 2.2% rise in new residential building to $20.1bn.
However, non-residential building work and renovations experienced declines, indicating mixed fortunes within the broader construction industry.
Despite a promising quarter, the construction industry faces challenges in meeting the ambitious National Housing Accord target of 1.2 million new homes over five years.
According to Master Builders Australia CEO Denita Wawn (pictured above), while new detached house construction has seen a welcome boost, the overall pace is still insufficient to meet national goals.
Only 165,048 new homes were commenced over the year, with projections suggesting a shortfall of approximately 350,000 homes from the target.
Wawn emphasised that apartment construction is critical to achieving housing targets.
Current investment levels are inadequate due to factors like low productivity, labour shortages, and high costs exacerbated by regulatory burdens and inflationary pressures.
For a substantial resolution to the housing crisis, increased investment in apartment building is crucial to make these options more viable and attractive, which in turn could help alleviate rental inflation and provide more housing options for Australians.
