Dwelling commencements posted a modest increase in the March 2010 quarter, according to the Australian Bureau of Statistics.
Total housing starts increased by 4.3 per cent in the first quarter of 2010 to an annualised level of nearly 170,000.
Housing Industry Association Chief Economist, Dr Harley Dale observed that the strong burst in `Other Dwelling' starts in the March 2010 quarter is no doubt a result of the Federal Government's Social Housing Initiative.
"The level of detached house starts, while considerably healthier than during the GFC period, fell by 2.1 per cent in the March quarter", he said.
The strong run up in building approvals through to early 2010 is not translating into new home starts as quickly as is desirable, Dale noted.
"The conversion rate for approvals to starts fell below the long term average to sit at 94 per cent in the March quarter."
HIA continues to expect a relatively healthy rise in housing starts in the 2009/10 financial year.
The number of housing starts (including conversions) in the March 2010 quarter grew by 9.3 per cent in New South Wales, 9.4 per cent in Victoria, 10.5 per cent in South Australia, and 12.1 per cent in Western Australia. With the exception of WA these results primarily reflect a strong quarter for `Other Dwelling' starts.
Housing starts fell by 3.3 per cent in Queensland, 2.9 per cent in Tasmania, 6 per cent in the Northern Territory, and 40.2 per cent in the Australian Capital Territory.