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 | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Row Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.18% p.a. | 6.44% p.a. | $2,575 | Interest-only | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | |||||||||||
6.19% p.a. | 6.25% p.a. | $2,579 | Interest-only | Variable | $0 | $835 | 90% | ||||||||||||||
6.39% p.a. | 6.78% p.a. | $2,663 | Interest-only | Variable | $null | $721 | 90% | ||||||||||||||
6.53% p.a. | 6.56% p.a. | $2,721 | Interest-only | Variable | $0 | $450 | 80% | ||||||||||||||
6.69% p.a. | 6.66% p.a. | $2,788 | Interest-only | Variable | $0 | $530 | 90% | ||||||||||||||
6.99% p.a. | 7.76% p.a. | $2,913 | Interest-only | Variable | $20 | $644 | 90% | ||||||||||||||
8.14% p.a. | 8.47% p.a. | $3,718 | Principal & Interest | Variable | $0 | $0 | 75% | ||||||||||||||
8.45% p.a. | 7.53% p.a. | $3,521 | Interest-only | Variable | $0 | $1,212 | 90% | ||||||||||||||
8.43% p.a. | 8.50% p.a. | $3,820 | Principal & Interest | Variable | $0 | $900 | 80% | ||||||||||||||
6.19% p.a. | 6.61% p.a. | $3,059 | Principal & Interest | Variable | $395 | $null | 95% |
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
Ready, Set, Buy!
Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!
With bonus Q&A sheet and Crossword!
Denise Raward
Harry O'Sullivan