This article is from the Australian Property Journal archive
New home sales rose marginally in October after falling for recording five falls in the past six months, according to the HIA.
HIA’s New Home Sales figures show that strong improvements in the New South Wales, Victoria and Queensland markets pushed the sale of new homes and units among Australia’s largest builders and developers up by 1.3% in October to 7,434 dwellings.
Private detached house sales increased by 4.6% while sales of multi-units fell by 16%.
HIA’s executive director of housing and economics Simon Tennent said that the spread of results across states continues to reflect the dual nature of Australia’s economic growth and housing affordability story.
“New detached house sales were up strongly in NSW, Victoria and QLD in October, but the accelerating house price growth and land constraints in Western Australia continues to see the new home sales market struggle to meet the needs of first home buyer.
“The real test will be in the first quarter of 2007 when the combined affect of three interest rate rises start to squeeze household budgets, particularly in the resource-poor states,” Tennent added.
HIA’s New Home Sales Survey is compiled from a sample of the largest 100 residential builders in Australia and is the most leading indicator on new housing activity.
For the month of October, detached house sales fell by 21.9% in WA and 0.9% in South Australia. Detached house sales rose by 16.7% in NSW, 15% in Victoria and 8.5% in QLD.
By Kathryn O’Meara
