The HIA New Home Sales Report released by Housing Industry Association indicates
a good start for the new home building sector in the new year. The HIA New Home
Sales Report is a survey of Australia’s largest volume builders.
HIA Chief Economist Harley Dale explains that total seasonally adjusted
new home sales posted a modest increase of 1.8 per cent in January 2015, adding
that the headline result is consistent with further growth in new home
construction in 2014/15, following a very strong year in 2013/14.
Describing the new housing sector as the star of Australia’s domestic
economy, Dale notes that the strength to national new home building
masks large differences across states and territories as well as dwelling types.
According to Dale, the January new home sales result reflected a
9.9 per cent rise in ‘multi-unit’ sales but only a 0.1 per cent increase in
detached house sales. On a state basis, detached house sales appear to have
peaked in New South Wales and Western Australia; Victoria and Queensland are
displaying a modest upward trend; and South Australia is continuing a year-long
downward trend, suggesting that in the short term at least new housing
conditions in this market will remain the weakest of the five mainland states.
In January 2015 detached house sales increased by 1.2 per cent in New
South Wales, 2.7 per cent in Victoria, and 5.6 per cent in South Australia.
Detached house sales declined by 1.5 per cent in Queensland and 4.0 per cent in
Western Australia. During the three months to January 2015, sales increased by
5.5 per cent in Victoria, 15.9 per cent in Queensland, and 1.7 per cent in
Western Australia. Meanwhile, sales declined by 11.3 per cent in New South
Wales and 3.6 per cent in South Australia.