The latest result for the HIA New Home Sales Report, a survey of Australia’s largest volume builders, shows strong growth in March 2015. Source: Timberbiz
The results mean sales volumes are at their highest level since early 2010.
“The residential construction sector continues to be the main bright spot in the broader domestic economy, with updates to the sector showing its ongoing strength,” said HIA Economist, Diwa Hopkins.
“Following Monday’s positive update to ABS residential building approvals, today’s results show total seasonally adjusted new home sales increased by 4.4% in the month of March.
“The March result for total new home sales consists of an 11.3% rise in multi-unit sales and a 2.6% rise in detached house sales.
“The monthly rise in both the detached and multi-unit segments of the market is an encouraging result. However, the broader trend is that growth over the past year has been driven by multi-unit sales, while detached house sales have tracked sideways.
“HIA welcomes yesterday’s reduction to the official cash rate, a decision which has arrested much of the uncertainty around monetary policy.
“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% in Victoria, 4.2% in New South Wales and also 4.2% in Western Australia.
Private detached house sales declined by 5.8% in South Australia and by 2.3% in Queensland. In the March 2015 quarter, detached house sales increased in Victoria (+5.2%) and Queensland (+4.3%). Elsewhere sales declined: in WA (-6.4%), NSW (-3.6%) and SA (-1.4%).
