There was a slight rise in dwelling commencements in the September 2007 quarter, due largely to an increase in the number of apartments being built, according to Australian Bureau of Statistics (ABS) figures released this week.
New home starts inched up by 1.3 per cent over the September 2007 quarter to 37,647, just 0.8 per cent lower than in the September quarter last year.
Detached house starts were effectively flat over the September quarter, at a level of 25,877. Multi-unit starts increased by 5.8 per cent to a level of 11,520.
Over the 12 months to September 2007 total housing starts were running at a level of 151,418.
This level was only 0.8 per cent higher than the previous 12 month period and fell some 20,000 dwellings short of the annual number required.
Building industry body, HIA, said that the 2007 calendar year would end up being the fifth consecutive year of weakness for housing starts across Australia.
HIA's Chief Economist, Harley Dale, said that the shortage of housing stock would place further pressure on already very tight rental markets in 2008.
"A range of Federal policies to address the supply side costs to new home building are to be applauded and will play a big role in reducing the current acute shortage of housing stock," Mr Dale said.
However, a major turnaround in this situation won't happen overnight, he warned.
On a state-by-state basis, the seasonally adjusted number of housing starts increased by 36.8 per cent in the Australian Capital Territory and was up by 9.3 per cent in Tasmania, 6.6 per cent in Victoria, 6.5 per cent in New South Wales, and 2.3 per cent in South Australia.
Housing starts fell by 20 per cent in the Northern Territory and 1.6 per cent in Queensland.
