This article is from the Australian Property Journal archive
Just when it seems the housing market has finally KO, following a sluggish five month period, new home sales have bounced back in February, according to the latest HIA New Home Sales figures.
According to the HIA New Home Sales survey, in the February 2006 quarter, the sale of new homes and units among Australia’s largest builders and developers increased by 7.6% to 8,644 dwellings.
In addition, the survey found that sales of new houses increased by 7.4% while the sale of multi-unit dwellings increased by 9.8%, the first rise since October last year.
HIA’s chief economist Harley Dale said the bounce in sales in February was an encouraging update following a flat start to 2006.
Dale said that the figures reflect a bounce in sales in all five mainland states.
For the month of February, detached house sales increased by 15% in Queensland, 12% in Western Australia, 9% in South Australia, 5% in New South Wales, and 2% in Victoria.
“It was a disappointing start to 2006 so a recovery in sales across the board in February certainly provides a more positive sign for the new housing industry.
“We have yet to see any kind of sustained recovery in lead indicators for new housing. We would hope that evidence of such a recovery will build over the course of this year,” he added.
Dale said house sales in NSW lifted once more, but the level remains very low as Sydney continues to buckle under excessive housing affordability constraints.
“Sales were up in the other four mainland states, with the strongest growth coming, not surprisingly, from WA and QLD,” he added.
By Kathryn O’Meara
