Australia's Housing Industry Association has said the fall in new residential work highlights several problems in the market.
The decline in new Australian home building at the end of 2009 is "disappointing", the Housing Industry Association (HIA) has commented.
HIA chief economist Dr Harley Dale suggested that the 3.9 per cent drop in the final three months of the year demonstrates that skilled labour shortages are constraining Australian property building activity.
The result is a "reminder of the importance of ensuring sufficient skilled labour is available to keep the wheels of recovery turning", he said.
Western Australia saw the biggest fall in new property building, with a 10.1 per cent fall, while at the other end of the scale, Australian home construction in Queensland dropped by just 0.7 per cent.
Despite this setback, Dr Dale predicted a much stronger year to come, pointing to Australian house price gains and the better-than-expected labour market performance to restore confidence.
The HIA has also spoken of the closing affordability window for first-time buyers looking to get on the Australian property ladder.
Senior economist Ben Phillips suggested prices will continue to rise as new builds do not meet requirements.
Posted by Craig Francis
The decline in new Australian home building at the end of 2009 is "disappointing", the Housing Industry Association (HIA) has commented.
HIA chief economist Dr Harley Dale suggested that the 3.9 per cent drop in the final three months of the year demonstrates that skilled labour shortages are constraining Australian property building activity.
The result is a "reminder of the importance of ensuring sufficient skilled labour is available to keep the wheels of recovery turning", he said.
Western Australia saw the biggest fall in new property building, with a 10.1 per cent fall, while at the other end of the scale, Australian home construction in Queensland dropped by just 0.7 per cent.
Despite this setback, Dr Dale predicted a much stronger year to come, pointing to Australian house price gains and the better-than-expected labour market performance to restore confidence.
The HIA has also spoken of the closing affordability window for first-time buyers looking to get on the Australian property ladder.
Senior economist Ben Phillips suggested prices will continue to rise as new builds do not meet requirements.
Posted by Craig Francis
