The latest HIA New Home Sales Report released by Housing Industry Association reveals strong growth in new home sales in March 2015. The HIA New
Home Sales Report is based on a survey of Australia’s largest volume builders.
According to HIA Economist Diwa Hopkins, the residential construction
sector continues to be the main bright spot in the broader domestic economy.
The latest results follow Monday’s positive update to ABS residential building
approvals, and show that total seasonally adjusted new home sales increased by
4.4 per cent in the month of March.
Total new home sales in March included an 11.3 per cent rise in
multi-unit sales and a 2.6 per cent rise in detached house sales, taking total sales
volumes to their highest level since early 2010. Observing that the monthly
rise in both the detached and multi-unit segments of the market was encouraging,
Ms Hopkins noted that growth over the past year was driven by multi-unit sales with
detached house sales tracking sideways.
HIA also welcomed the latest reduction to the official cash rate, a
decision that has arrested much of the uncertainty around monetary policy. Ms
Hopkins explains that lower lending rates will provide added support to
residential construction activity, which is emerging as a key area of growth
mitigating the effects of the downturn in mining investment and construction.
In March 2015 private detached house sales
increased by 5.9 per cent in Victoria, and 4.2 per cent in both New South Wales
and Western Australia. Private detached house sales declined by 5.8 per cent in
South Australia and by 2.3 per cent in Queensland. In the March 2015 quarter,
detached house sales increased in Victoria (+5.2 per cent) and Queensland (+4.3
per cent). Elsewhere, sales declined in WA (-6.4 per cent), NSW (-3.6 per cent)
and SA (-1.4 per cent).