New home sales up over June quarter: HIA

Sales for new homes increased by 1.2% over the month of June and 2% for the June quarter, according to a survey conducted by the Housing Institute of Australia (HIA). 

The HIA New Home Sales Report shows that multi-unit sales were a major driver in the increase, up 15.9% for the month. Sales for new detached houses actually fell over June, dropping 1%, but were up for the quarter, according to HIA chief economist Harley Dale.

“Detached house sales increased by 2.6% in the June 2014 quarter despite falling in the final month,” said Dale.

“That is a healthy note on which to finish the fiscal year.”

He noted that the results bode well for the domestic economy.

“The new home building sector will provide a healthy contribution to broader economic growth in 2014/15,” said Dale.

“As the recovery enters its third year, the magnitude and duration of the current new home building upcycle is less certain than would usually be the case at this juncture.

“The share of medium/high density construction is higher and there are considerable delays occurring in the availability of titled land for detached and semi-detached housing.”

Over June, sales of new private detached houses fell by 3.2% in New South Wales and 4.2% in Victoria, but were up in all other mainland states. Queensland saw private detached housing sales increase by 1.8%, while South Australian sales rose by 1.3% and Western Australia’s sales were up 2.2%.

On a quarterly basis, Queensland’s new private detached house sales increased by the greatest proportion, 6.6%. South Australia saw the biggest drop, with an 8.4% fall in sales for the quarter.