Apartment surge leads sales higher for June

Sales of new homes lifted in June, led by a 15.9 per cent spike in apartment sales, according to the latest results from the Housing Industry Association (HIA).

The HIA New Home Sales Report showed new home sales increased 1.2 per cent in the month of June 2013 and two per cent for the June quarter.

However, it was the sharp increase in the sales of multi-units that drove the result, with sales of detached homes falling one per cent for the month of June, despite increasing 2.6 per cent for the quarter.

HIA chief economist Dr Harley Dale said the results were a “healthy note on which to finish the fiscal year” and, he believed, they bode well for new residential construction.

“The new home building sector will provide a healthy contribution to broader economic growth in 2014/2015,” Dr Dale said.

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

However, Dr Dale believed a lack of land for apartment construction may hamper new sales growth in the months ahead.

In the month of June, sales of detached houses fell 3.2 per cent in NSW, 4.2 per cent in Victoria, but increased 1.8 per cent in Queensland, 1.3 per cent in South Australia and 2.2 per cent in WA.

However, over the quarter to June, sales of detached houses had increased in four out of the five mainland states, which Dr Dale said was “another pleasing aspect to observe”. South Australia was the only exception, with sales falling 8.4 per cent for the quarter.

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