Latest NewsHome Building Grows ModestlyThursday, 23 March 2017

Builders started work on nearly 45,000 new homes across the country in the three months to the end of June, the biggest quarterly number of dwellings in more than six years, new data shows.

But growth in dwelling commencements was a more modest, seasonally adjusted 0.8 per cent in the quarter, and well short of the 5.0 per cent growth expected by economists.

It was the slowest pace of quarterly growth in the past year, in line with a moderation in building approvals during the June quarter.

During the 12 months to the end of June, commencements rose by 43.8 per cent, the Australian Bureau of Statistics data showed.

"Earlier surges in building activity were a lagged effect from stimulus measures and very low interest rates," JP Morgan economist Ben Jarman said.

"The pull-back evidenced in today's data confirms that idea, and sends a signal that is consistent with the current trajectory of the housing finance, building approvals, and dwelling price data."

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