This article is from the Australian Property Journal archive
NEW home sales have started the new financial year with a 1.5% increase. However, building work completed fell 2.2% in June.
According to the HIA’s New Home Sales figures, sales reached a level of 8,441 in July.
HIA’s chief economist Harley Dale said that sales for the more volatile multi-units sector rose by 13.5% in July, partially reversing a weak end to last financial year. Sales of detached houses were down by 0.1%.
“This is a disappointing first update on the home building industry in the new financial year, suggesting a recovery remains some distance off.
“Equally concerning is the fact that investors have not re-entered the market in aquiring new detached houses for what is already a very tight pool of rental stock. For renters of both detached and other types of housing a significant increase in supply is essential to turning around the affordabilty crisis,” Dale said.
Meanwhile, the latest Australian Bureau of Statistics figure shows building work done, in volume terms, fell by 2.2% in the June quarter, to $15.25 billion. This followed a rise of 0.4% in the March quarter.
Residential work done fell by 1.2%, while non-residential building work done fell by 3.7%.
In total, construction work done fell by 2.2% in the quarter, to $26.95 billion. In the past year, new residential building rose 1.1%, to $7.89 billion, while additions and alterations have risen by 2.8%. Non-residential building has risen by 1% in the past year, while engineering work done is up by 5.5%. In total, construction work done has risen by 3.0% in the past year.
There was a 4.5% rise in construction work done in Queensland, a 2.5% rise in Victoria and 0.5% in Western Australia.
Elsewhere, Northern Territory fell by 21.7%, the Australian Capital Territory fell by 14.4, New South Wales fell by 5.6%.
Australian Property Journal
