The improving housing market has finally led to an increase in new-home construction – for the first time in three years.
Residential construction is the main force behind the expansion, with apartments and house building recording their highest readings in the eight-year history of the Australian Industry Group/Housing Industry Association’s Australian Performance of Construction Index (PCI).
Australian Industry Group public policy director Peter Burn told AAP the figures suggest we may be on the verge of a long-awaited recovery in the building sector.
“Consolidation over the next few months will show whether a sustained recovery will be built on the combination of renewed confidence and low interest rated during the first half of 2014,” he said.
Housing Industry Association chief economist Harley Dale said the results were a milestone moment and heartening news for the building industry.
“What appears a sustained improvement in house and apartment activity and new orders is consistent with a broader recovery evident for leading indicators of new home building,” he said.
“Activity and new orders for houses indicate further upward momentum ahead for detached house building approvals, itself a further tick in the box for a sustained new home building recovery.”