Construction stalls down under

Contstruction figures fell in Australia during November according to figures supplied by the Australian Industry Group.

The Housing Industry Construction Index fell 3 points to below 50 points which is the level that defines expansion and construction. The fall is blamed on a drop in the building of flats and reduction in commercial and engineering work. The proceeding two months both showed growth in this division.

Australian real estate housing starts were continuing to grow but a decline in first home buyers was proving detrimental; another factor in the possible cause of the drop in activity is the interest rises activated by the Reserve Bank of Australia three months in succession.

Recovery across the new homes sector cannot afford to stall in Australia while the population grows at much faster levels than previously expected, otherwise the country will suffer a housing crisis never before seen.