Residential Housing struggles to Fill the Gap
The latest March quarter figures from the Australian Bureau of Statistics (ABS) suggest that non-residential property construction and the engineering infrastructure sector are struggling to maintain recent gains achieved in the three preceding quarters.
Construction activity fell by 2 per cent in the March quarter, adjusted for inflation and regular seasonal variations, according to ABS data.
This was mainly due to engineering construction, which includes roads, bridges, mines, railways and the like, which saw a decline in activity of 2.5 per cent.
Activity on non-residential buildings such as retail, offices, and hospitals only declined by one per cent for the same period, while the housing sector is expected to continue on its path of recovery.
According to the Housing Industry Association (HIA), demand for new dwellings is picking up at a consistent rate. The number of new homes sold in April was up by 4 per cent from March, in seasonally adjusted terms, which is the highest level recorded since the end of 2011.