New data released by the Australian Bureau of Statistics shows that the country’s new home building sector slipped into recession in the 2011/12 period.

 

The Housing Industry Association (HIA) says that the slip in activity shows an urgent need for policy reform to stimulate the sector out of GFC levels.

 

"Too few governments in Australia are implementing the policies required to stem the negative consequences a persistently weak new housing sector is having on tens of thousands of Australian businesses and many more labour market participants,” HIA Senior Economist Dr Harley Dale said.

 

The ABS statistics show a 11/7 per cent fall in the number of new home commencements, finishing at 138,852 for the year.

 

“There have only been two periods in the last fifteen years where the total number of dwelling commencements in a twelve month period have been lower than they are now - the first was at the time the GST was introduced, and the second was in 2009 during the worst of the financial crisis,” said Dr Dale.

 

Despite the contraction, commencements picked up by 4.6 per cent in the June Quarter, showing some hope for the lacklustre sector.