Australia’s apartment building boom has hit the skids with a double digit backslide in two months

first_imgNew orders in the apartment building sector were in negative territory for the second consecutive month.THE Australian apartment construction boom looks set to go the way of the resource boom it replaced, after hitting a double digit negative slide in just two months, latest data shows.The Australian Industry Group/Housing Industry Association Australian Performance of Construction Index – which tracks activity, orders/new business, deliveries and employment across the construction sector – saw apartments fall a massive -3.3 points to 41.4. That brings the apartment building backslide to a whopping -11.2 points in just two months Anything below 50 points shows contraction in the sector.It was the lowest point for apartment building in 11 months, according to Housing Industry Association senior economist Shane Garrett. The apartment boom saw a major surge in construction activity in Brisbane. Picture: Jack TranMore from newsMould, age, not enough to stop 17 bidders fighting for this homeless than 1 hour agoBuyers ‘crazy’ not to take govt freebies, says 28-yr-old investorless than 1 hour agoNew orders in the apartment building sector remain in contraction mode after dropping a whopping -22 points in August and then clawing back 2.5 points in September to now sit at 46.3pts.“We see what’s going on in Queensland being replicated in other parts of the country,” Mr Garrett said, partly due to the impact of state disincentives for foreign property investors but also due to the APRA crackdown on interest-only loans which were overwhelmingly taken up by investors.“The foreign investor element of demand has been particularly important in lifting activity in Sydney and Melbourne and to a lesser extent Brisbane.”That apartment fall helped take the Australian PCI down 0.6 points to 54.7 points in September, which Mr Garrett said signalled “a positive but somewhat slower rate of overall growth”.There was a bright spot for residential construction though, with house building lifting 0.1 points in September to lead the Australian PCI 12 month sub-sector averages at 53.8 points.“It was also the sector’s eighth expansion in activity in the past nine months in line with expanding new orders over most of this period.”Engineering construction activity remained in expansion mode at 56.9 points (down 1.1pts) while commercial construction was at 50.3 points (up 0.1pts).undefinedlast_img

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