This article is from the Australian Property Journal archive
NEW home sales increased by 6.1% in August after falling by 9.7% in July.
According to the HIA New Homes Sales report, the number of seasonally-adjusted detached house sales increased by 2.9% in August 2016, following a decline of 7.4% in July. However, ‘multi-unit’ sales dropped by 17.3% in July before recovering by 17.8% in August.
HIA chief economist Harley Dale said sales of new detached houses and ‘multi-units’ did not rebound sufficiently in August to offset the decline in July.
Detached house sales increased in four out of five mainland states, up by 12.1% in South Australia; 8.7% in New South Wales; 7.8% in Western Australia; and by 4.2% in Queensland.
Detached house sales fell by 5.0% in Victoria during the month.
“These latest New Home Sales figures therefore don’t paint a stellar picture of an August recovery – following as they do a big drop in July, but unless you’re a pessimist looking for a large black hole then this latest update is a long way from a downbeat story.
“Australia is in the midst of the longest and biggest new home building cycle in the nation’s history.
“Despite being at the mature stage of this cycle we still face a situation where key leading indicators such as HIA New Home Sales point to healthy levels of construction ahead, even if volumes will be down on the 2015/16 record high,” Dale said.
“Total new home sales expanded by 1.5% over the three months to July this year. That is a great result when the level of national new home building has already grown over four consecutive years,” he concluded.
Australian Property Journal
