New home sales continue rising


New home sales continue rising

Posted on Friday, May 30 2014 at 8:20 AM

Australian new home sales posted a fourth consecutive monthly gain in April 2014 according to the Housing Industry Association (HIA).

The HIA says private sector new home sales
saw a monthly gain of 2.9 per cent to be up by six per cent over the three
months to April this year.

Multi-unit sales increased by 9.3 per cent in
April, while detached house sales rose 1.8 per cent marking it’s sixth consecutive
increase according to the industry group.

Harley Dale, chief economist with the HIA,
says these results underline the construction industry’s role in boosting the
national balance sheet.

“The recovery in new home building is a key
plank in Australia’s economic growth, as evidenced by the March quarter
construction work done figures released yesterday.”

Dale says market participants can expect the
good news to continue.

“Momentum in new home building activity will
carry over into the June quarter, while the trajectory evident in coming months
for leading indicators such as new home sales and building approvals will
provide crucial insight to the growth prospects for the broader economy in
2014/15.”

On a
state-by-state basis, Western Australia saw the largest increase in seasonally
adjusted figures with a gain of 6.4 per cent for April.

South
Australia had the most disappointing result with a six per cent fall for the
period.

Dale says
increased support from government is needed citing taxes, regulations and
labour shortages as hurdles for the building industry.

“To unleash the productivity dividend the new
home building sector can provide the Australian economy in addition to the
positive impetus already in play, policy makers across all levels of government
need to address these structural impediments.”

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