A sharp slowdown in the pace of dwelling commencements has been caused by a series of official interest rate hikes since last October, economists say.
Dwelling commencements in the June quarter rose 0.8 per cent to 44,899 units, seasonally adjusted, from an upwardly revised 44,527 units in the March quarter, the Australian Bureau of Statistics said on Wednesday.
This compares with a 9.1 per cent rise for the March quarter.
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The June quarter increase was far below the median market forecast of a 5.0 per cent rise in dwelling commencements for the June quarter.
ICAP economist Adam Carr said the data showed six Reserve Bank of Australia (RBA) rate rises between October last year and May were a prime factor in the slowdown.
"It's not the level that rates are at, it's the pace they were increased," he said.
"The turnaround in the (dwelling commencements) data over the second half seems to support that view, although it is early days."
The current cash rate is 4.5 per cent after the RBA opted on Septemer 7 to keep the rate steady for the fourth straight month.
This time last year the cash rate was at a 49-year low of three per cent.
Mr Carr said he had forecast a three per cent fall in dwelling commencements in the June quarter and was pleased with the marginal rise in the actual headline figure.
"It's stronger that what I was predicting," he said.
"To that extent, the slowdown in housing was not as bad as I feared.
"It suggests to me the slowdown, the impact, will be small on GDP (economic growth)."
In the year to June 2010, total dwelling commencements rose 43.8 per cent, seasonally adjusted, the ABS said.
Real Estate Institute of Australia (REIA) data showed the median house price nationwide rose 3.2 per cent in the June quarter to $553,243.
With the exception of Perth and Hobart, all Australian capital cities recorded increases in median house prices over the quarter, Mortgage Choice senior corporate affairs manager, Kristy Sheppard, said.
Sydney, Melbourne and Darwin recorded the highest increases while the lowest were in Hobart, Adelaide and Brisbane.
"Auction clearance rates remained fairly high, on average, over the June quarter, with the prestige market slowing and the more affordable areas picking up pace," Mr Sheppard said in a statement.
"As we move into spring, this continues to be the case."
