Sunday, June 24, 2012

Dwelling commencements down

Charting the weak dwelling unit commencement data this week from Mark the Graph:
"This week the ABS released its latest quarterly print for dwelling unit commencements. While all the trends are downwards, NSW appears to be in a particularly deep historical hole."
Queensland is not quite as bad as NSW but remains close to 30 year lows:

Meanwhile RPData have an interesting post that property owners are holding onto their homes for longer:
"Since the middle of the last decade the average hold period of homes has continually increased as affordability barriers and high exit costs result in owners holding on to their properties rather than buy new ones."
"Across Australia, the average hold period for a house is recorded at 9.0 years and at 7.7 years for a unit.  The average hold period has continued to increase over the past year, at the same time last year the hold period was recorded at 8.5 years for houses and 7.4 years for units.  The average hold period for houses and units was fairly static until late 2005 and actually declined during the 2001-04 property boom but it has since consistently increased."

There may be implications in that trend for state budgets which rely on property transaction taxes.

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