This article is from the Australian Property Journal archive
THE new home sales market has passed the peak of the cycle, the HIA declared.
A survey of Australia’s largest volume builders found total new home sales declined in April following a strong rise in March.
Total seasonally-adjusted new home sales declined by 4.7% in April, reflected in both detached house sales (-3.0%) and sales of ‘multi-units’ (-10.8%).
The monthly decline in detached house sales was widespread, with four out of the five mainland states recording falls.
In the month of April 2016 detached house sales declined in four of the five mainland states: Western Australia (-19.8%); New South Wales (-8.1%); Queensland (-7.8%) and South Australia (-1.3%).
Only in Victoria did detached house sales increase (+14.3%).
Economist Diwa Hopkins said the trend in new home sales reiterates that the peak for the cycle has passed.
“But the descent we’re now observing is very mild.
“This signals the potential for very healthy home construction activity throughout 2016, much as we have been anticipating,”
“This overall trajectory of total new home sales is consistent with our long-held expectations for new home building activity.
“Our forecasts reflect an expectation that a modest decline in new home building in 2016 will be largely driven by a decline in multi-unit construction, following the successive record levels that occurred in 2015 and 2014,” Hopkins said.
Australian Property Journal
