Real estate construction decline eases

In what may be a positive sign for the real estate construction industry, the end of 2012 saw a slowdown in the sector's decline.

The latest Australian Industry Group/Housing Industry Association (HIA) Australian Performance of Construction Index (Australian PCI) experienced a rise of 1.8 points to 38.8 in December.

It should be noted that any recording under 50 is a sign of contraction in the residential construction industry.

Peter Burn, the director of public policy with the Australian Industry Group, said that while there are tough times ahead, it is still a positive step.

He commented: "There are, however, some signs that 2013 might see more positive conditions.

"For the industry as a whole, new orders declined at a distinctly slower rate in December."

He added that commercial real estate also performed well in the final month of 2012.

HIA chief economist Harley Dale noted that the construction industry is catering to a specific trend among homebuyers.

More than 60 per cent of residential building across the country relates to detached homes, he said, and as orders decline, it points to a new push for apartments.

Units saw only a slight decline in December - recording an index reading of 40.1 as opposed to 34.7 for detached housing.