Home building composition changing with 7.3% rise in detached new home sales in June: HIA

Stephen TaylorAugust 1, 20130 min read

New home sales figures illustrate the changing composition of new home building this year, according to the Housing Industry Association (HIA).

“Detached housing has gained momentum as non-detached housing - primarily mid/high density product - has lost momentum to date,” chief economist Harley Dale says.

“The leading home building indicators of both new home sales and building approvals are highlighting this trend.”

The HIA New Home Sales report, which surveyed Australia's largest volume builders, shows that total seasonally adjusted new home sales rose by 3.4% in June - the fourth consecutive rise.

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Detached house sales rose by 7.3%  in the last month of the 2013 financial year, but multi-unit sales dropped by 17.5%.

“Last financial year was a tale of two halves for new home sales,’’ Dale says.

‘’The first stanza was dominated by weakening detached house sales up against stronger multi-unit sales; the latter marked by an improving detached house segment occurring as the multi-unit market lost momentum.”

Dale says the overall result is that new home sales fell by 4.3% in 2012/13 when compared to the 2011/12 financial year.

“Given it was a weaker year overall for new home sales it has been very encouraging to observe upward momentum build as we moved through 2012/13,” Dale says.

“There is still a long way to go. New home sales volumes are 27% down on their long-term average. A range of leading indicators beyond just new home sales are yet to provide evidence of Australia approaching the healthy and geographically broad-based new home building levels required by our growing population and transitioning economy.”

In June detached house sales rose by 19.7% in Victoria, 7.1% in Western Australia, 3.9% in New South Wales, and 0.5% in South Australia. Detached house sales fell by 11.0% in Queensland.

Stephen Taylor

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