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New home demand surges

28 July 2009 Reporter

There is increased demand for new homes in Australia, the Housing Industry Association (HIA) has said.

According to the association’s chief economist Harley Dale, low variable mortgage rates, the first home owner boost and attractive deals from builders have culminated to generate increased demand for new homes.

“There has also been an increase in the cost of land across Australia which shows the property market is healthy,” Mr Dale said.

The weighted cost of land increased 7.4 per cent from $160,000 in December to $172,490 in March.

Recent comments by the Reserve Bank of Australia further fuelled speculation that demand for new homes is on the rise.

In the minutes of the monthly meeting, the RBA observed that house prices have been rising, loan approvals are "strong" and there has been "solid growth" in housing credit.

New home demand surges
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