HOME building fell to its lowest level in eight years in the first three months of 2009, with work starting on just 30,949 properties.

Australian Bureau of Statistics data, released today, shows dwelling commencements were 22.5 per cent lower than a year earlier, posting a 4 per cent decline compared to the December quarter 2008.

The last time so few homes were being built was in June 2001 when the construction sector was recovering out of a slump that followed the introduction of GST a year earlier.

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