The latest data indicates just over $17.2bn of residential construction was done in the third quarter, down 1% on the previous quarter.
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.
Lender | Advertised rate | Comparison rate | Monthly repayment | Rate Type | Offset | Redraw | Ongoing Fee | Upfront Fees | LVR | Lump Sum Repayment | Additional Repayments | Pre-approval | |
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| Variable | More details | ||||||||||||
| FEATUREDGET A DISCOUNTED GREEN RATE | Green Construction Home Loan (Interest Only)
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Green Construction Home Loan (Interest Only)
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| Variable | More details | ||||||||||||
| FEATUREDFREE REDRAW FACILITY | Basic Home Loan (Principal and Interest) (LVR 70%-80%) | ||||||||||||
| Variable | More details | ||||||||||||
| FEATUREDAN EASY ONLINE APPLICATION | Yard Investment Loan (Principal and Interest) (LVR < 80%)
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Yard Investment Loan (Principal and Interest) (LVR < 80%)
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| Variable | More details | ||||||||||||
| FEATURED | Construction Home Loan (LVR < 80%)
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Construction Home Loan (LVR < 80%)
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| Variable | More details | ||||||||||||
Rocket Repay Home Loan (Interest Only) | |||||||||||||
| Variable | More details | ||||||||||||
Standard Variable Home Loan (Interest Only) | |||||||||||||
| Variable | More details | ||||||||||||
Standard Variable Home Loan (Interest Only) | |||||||||||||
| Variable | More details | ||||||||||||
Standard Variable Rate Home Loan (Principal & Interest) | |||||||||||||
| Variable | More details | ||||||||||||
| FEATUREDFAST TURNAROUND TIMES AND FLEXIBLE LOAN OPTIONS | Basic Investment Loan (Principal and Interest) (LVR < 60%) | ||||||||||||
- Interest Only during construction
- No monthly, annual or ongoing fees
- Get Australia’s lowest rate construction loan when you go green
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 made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. 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. Rates correct as of October 19, 2021. 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
