Trade availability slips to under supply

A new survey has shown trade availability in Western Australia's residential sector has slipped back to short supply, prompting concern that labour shortages may constrain housing activity later next year.

The September quarterly trades report by the Housing Industry Association in conjunction with Austral Bricks showed that the availability of tradespeople in Perth fell from 0.33 in the June quarter to minus 0.6.

In regional WA, the indicator fell from 0 to minus 0.13.

Nationally, the indicator fell from 0.1 to negative 0.07 in the September quarter.

HIA chief economist Harley Dale said the decline meant tradespeople were defined as being in moderate under supply.

"At the same time trade rates were effectively flat, a good situation for renovators and home buyers alike, especially with interest rates back on the rise," Mr Dale said.

The price index inched up by 0.5 per cent in the September 2009 quarter to be 3.1 per cent lower than the comparable period last year.

"With little price pressure, and trade availability still considerably better than it was up until late last year, it is a good time to engage in renovating an existing property or building a new home," Mr Dale said.

"The pressing concern is that this situation won't last and labour shortages will re-emerge by mid 2010 as a major constraint on the ability of the housing industry to grow both in terms of new home building and renovation activity.

"It is vital for all levels of government to keep the training of apprentices and trainees as a priority, encouraging young people to not only start a trade but to complete the training.

"Failure to constantly address the structural shortage of skilled labour will inhibit the recovery in the housing industry, denting economic growth and affordability along the way."