According to the Australian Bureau of Statistics (ABS), the value of construction work done overall was a touch over $51 billion, down 2% in seasonally-adjusted terms.

The only state or territory to record an uptick in construction over the quarter was the Northern Territory, up in value by 3.9%. 

New private sector houses built were up in value 1%, from $8.56 billion to $8.65 billion over the quarter in seasonally-adjusted terms.

Renovations and additions - including conversions - in the private sector were also up 4.56% in value over the quarter, from $2.25 billion to $2.35 billion.

Building a home? The table below features construction home loans with some of the lowest interest rates on the market.

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Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.14% p.a.
6.20% p.a.
$2,047
Interest-only
Variable
$0
$835
70%
6.43% p.a.
6.68% p.a.
$2,143
Interest-only
Variable
$0
$530
90%
  • Interest Only during construction
  • No monthly, annual or ongoing fees
  • Get Australia’s lowest rate construction loan when you go green
6.43% p.a.
6.68% p.a.
$2,143
Interest-only
Variable
$0
$530
90%
6.45% p.a.
6.20% p.a.
$2,515
Principal & Interest
Variable
$0
$1,520
60%
6.74% p.a.
6.42% p.a.
$2,247
Interest-only
Variable
$0
$600
90%
6.92% p.a.
6.95% p.a.
$2,307
Interest-only
Variable
$0
$300
80%
6.94% p.a.
7.19% p.a.
$2,313
Interest-only
Variable
$0
$530
80%
7.09% p.a.
7.45% p.a.
$2,363
Interest-only
Variable
$0
$500
80%
7.81% p.a.
7.84% p.a.
$2,882
Principal & Interest
Variable
$0
$600
69.99%
8.29% p.a.
8.62% p.a.
$3,016
Principal & Interest
Variable
$0
$0
80%
8.56% p.a.
8.58% p.a.
$2,853
Interest-only
Variable
$0
$600
69.99%
8.68% p.a.
8.75% p.a.
$2,893
Interest-only
Variable
$0
$800
95%
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Westpac senior economist Andrew Hanlan said this was weaker than market expectations.

"The point estimate of -2.6% was weaker than the market (median -2%), albeit not as soft as Westpac (-3.8%)," he said.

"The key surprise, housing declined by less than anticipated ... renovations, often volatile, rebounded."

However, Mr Hanlan said the "key take-out" out of construction data was that "the Australian economy rebounded solidly as COVID restrictions were eased."

"The construction data is one of the quarterly partials ahead of Q3 GDP [gross domestic product], to be released on December 2," he said.

Second quarter GDP figures confirmed Australia was in a recession, down 7% - the highest quarterly fall on record (data goes back to 1959).

Two consecutive quarters of GDP growth, on the other hand, implies Australia is out of a 'technical' recession.

How does HomeBuilder factor in?

Housing Industry Association economist Angela Lillicrap said construction work done was at its lowest level since 2014, but did point to a couple of green shoots in the sector.

“This data precedes the positive impact of the HomeBuilder program due to the lag between purchasing a house and commencing construction. It does reflect the impact of the restrictions on activity including the Victorian shutdown period,” she said.

“With the outlook for a strong new home building market and a strong renovations market, employment within the sector will grow into the new year."

A boost in private renovations and home builds have not necessarily led to keeping tradies in jobs, with insolvencies in the past fortnight up in the construction sector by 6.25%, according to the Australian Financial Security Authority.

Photo by Henry & Co. on Unsplash



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