Waiting game: 21,500 homes under construction

The number of houses in the construction stage in Western Australia has hit a record high, with 21,524 buyers waiting for completion of their new homes.

That figure, from the December quarter, was up 2 per cent on the level in September.

It’s also about 22 per cent higher than the peak of the previous boom in March 2015, according to the latest data from the Australian Bureau of Statistics.

There was a huge rise in commencements in the period after the start of the pandemic in 2020, with demand supported by about $1.1 billion of stimulus from the state and federal governments.

But completions have been far slower.

The divergence between commencements and completions means the number of houses in construction has surged, with some customers waiting two years for their build to be finished.

The industry has been beset by ongoing delays, sparked by big challenges around labour and material availability, stalling homes in the construction phase. 

Today’s ABS data offered some positive signs, however.

Work started on about 4,600 dwellings (including both houses and apartments) in the December quarter, seasonally adjusted, up 41 per cent on the previous quarter.

While that number was still down on the December quarter of 2021, it shows a recovery in the pipeline of new builds from September’s lows.

Completions are also improving.

More than 3,800 dwellings were finished in the three months to December, seasonally adjusted, nearly 20 per cent more than the September quarter.

That was the highest number of dwelling completions since March 2020.