The Housing Industry Association (HIA) has warned that falling residential activity as recorded by the Australian Bureau of Statistics could indicate a slump in the Australian property market.
Residential building activity contracted by 1.9 per cent over the three months, with new dwellings down by 1.2 per cent and renovations slumping by 5.5 per cent.
HIA senior economist Andrew Harvey noted that residential building work has now fallen for the fourth consecutive quarter, with renovations moving back for the third consecutive quarter.
"We are seeing real consequences for jobs, small businesses, the supply of new housing and rental costs," he added.
This was backed by Master Builders Australia chief executive officer Wilheim Harnisch, who described the new figures as representative of the country's "two-speed" economy.
The industry is relying on the Reserve Bank of Australia's rate cuts to offer it a boost and improve activity levels across the board, he concluded.
Posted by Steve Douglas
