House building continues to fall down under

The number of new housing developments being sanctioned across Australia continues to fall.

According to the latest Australian Performance of Construction Index released by the Australian Industry Group in conjunction with the Housing Industry Association (HIA), building activity dropped once again in August.

The index was measured at 32.2 during the month, which was down from 32.6 in July. Any score under 50 is indicative of a decline in the sector.

House hunters who are looking to secure a mortgage will inevitably find it difficult to buy an affordable home while there is such a lack of supply and the HIA is concerned about the dearth of new-builds coming on to the market.

A recent study by the organisation showed that the outlook for the construction industry is "patchy".

"The continuing severe slump in residential and commercial construction is a drag on the overall economy," commented Australian Industry Group director of public policy Peter Burn.

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