ABS Dwelling Commencements fell sharply by 12.6 per cent in the March 2012 quarter, highlighting the urgency of investment and reform to boost new housing supply, said the Housing Industry Association (HIA).
"Dwelling commencements have been declining since the middle of 2010 and are currently running at an annualised level of 122,492," said HIA Chief Economist, Harley Dale.
"Excluding the new home building recession around the GST, this is the lowest level for dwelling commencements since the September quarter of 1996. Furthermore, it is a weaker outcome than was evident at any time during the GFC."
Master Builders Australia's Chief Economist, Peter Jones said the extremely poor dwelling commencements result reflect high levels of consumer caution and low levels of confidence.
"The figures are a major setback for an industry that has now fallen to lows experienced during the global financial crisis. This puts at risk the viability of many building and construction operations.
"The results confirm the urgency of the Reserve Bank's decision to cut interest rates in May and June.
"The Reserve Bank must consider the very poor condition of the housing sector and cut interest rates further.
"If recent rate cuts fail to stimulate the industry the residential building industry is headed for a 'perfect storm'.
"Today's figures will increase industry's nervousness, particularly in the lead up to the introduction of the Carbon Tax on 1 July," Mr Jones said.
