BUILDERS BEGAN work on just 510 new homes in the Republic last month - 30 per cent of the total begun in August 2007.
The figure is one of the lowest in the last 12 years.
Industry observers say it indicates that the construction slump is now likely to continue into 2010.
The number of new homes registered with industry guarantee body Homebond in August compares with 1,714 during the same month last year, a fall of 70.2 per cent.
Planned new homes have to be registered with either Homebond or another agency, Premier, three weeks before work begins.
On average, the houses are built within nine months of registration, which means that the system is a good guide to future house- building activity.
The Government, industry and economists use the system as a means of tracking the sector's health.
While the total was slightly better than the 481 registered in July, the rate of decline is largely the same.
Commenting on the figures yesterday, NCB Stockbrokers industry analyst John Sheehan said that, given the nine-month lag, the figures indicate that residential building is likely to remain weak throughout next year, with no real recovery likely before 2010.
"Clearly it's still very, very weak, and there is no sign of an up-turn," he said.
"I would say that buyers need to see some confidence coming back into the market.
"Affordability has improved a bit, but people are always reluctant to take the plunge while they see prices falling and while there are concerns about employment and the economy generally," he added.
Along with improved conditions and confidence, Mr Sheehan said that people will have to start buying existing house stocks before a turnaround in the market can get fully under way.
"All that has to be worked through," he explained.
Most analysts agree that around 30,000 new homes will be built in the Republic next year.
This is around 60 per cent of what is believed to be the natural demand in the market.
When the housing boom hit its height two years ago, a record 88,000 new houses were built here.
On average, every 10,000 new homes built creates 20,000 new jobs.
