Fed: Pre GST building splurge hits new record

AAP General News (Australia)
08-31-2000
Fed: Pre GST building splurge hits new record

CANBERRA, Aug 31 AAP - Builders had their best three months ever in the June quarter,
with the pre-GST building splurge lifting the value of residential building work completed
to a record.

The Australian Bureau of Statistics (ABS) said the value of building work completed
in the June quarter rose 8.8 per cent seasonally adjusted to $10.3 billion.

That was up 15.2 per cent for the year and the highest figure on record but the rise
is entirely due to home building.

With homeowners desperate to beat expected GST price rises, the value of residential
building work done in the June quarter soared a record 13.5 per cent to another record
high of $6.9 billion - up 31.1 per cent for the year.

However, it was almost certainly the end of the good news for builders.

Recent building approvals have shown demand plummeting by about one-third in recent
months, indicating building work is heading for a collapse in coming months.

While a huge backlog should still see builders busy for some months, next year could
be one of the worst on record for the industry.

AAP ss/mfh/it/de

KEYWORD: BUILDING

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