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Housing construction data published yesterday suggest the Australian residential building sector is showing signs of recovery, economists say. But the road to full health is a long one as the number of commencements, although rising, are yet to reach the level where they can satisfy the housing demand.
Dwelling commencements in the September quarter rose by 1.3 per cent, the Australian Bureau of Statistics said. However, new private sector house commencements inched up just 0.1 per cent in the quarter, seasonally adjusted.
NabCapital Research senior economist David de Garis said the rise in housing starts was "not yet sufficient to arrest the continuing squeeze in residential rental markets".
