Multi-unit sales have hit new cyclical high: HIA

Sales of multi-units hit a new cyclical high in September, even while the total new home sales figure fell flat, according to the Housing Industry Association’s (HIA) New Home Sales Report.

Over the month of September, new home sales were stagnant while an 11% increase in multi-unit sales was recorded.

The 11% rise follows a strong increase in August, with multi-unit sales now up 8.7% for the quarter.

September’s seasonally adjusted detached house sales fell by 2.3% over the month, now down 6.5% over the September 2014 quarter.

Detached house sales were up 13.4% in Queensland over the month, while New South Wales recorded a 9.9% fall.

Further drops were seen in Western Australia, South Australia and Victoria, at 5.6%, 3% and 2.4% respectively.

Over the quarter, the only state where sales for detached houses increased was New South Wales, which was up 2.6%.

Victoria was down 15.1%, while Western Australia, South Australia and Queensland also recorded drops of 8.5%, 2.8% and 1.5% respectively.

“A moderate decline in detached house sales have been driving an overall loss of momentum in new home sales,” said HIA chief economist Harley Dale.

“Conversely, sales of multi-units have gained a second wind since June this year, driven by both apartments and semi-detached/townhouse product.

“The overall profile for new home sales is consistent with a healthy year for dwelling construction in 2014/15. It would be desirable to see that outcome in detached and low density construction in addition to the high rise sector.”