New home sales inched up in March despite the tightening monetary lending environment.
According to the Housing Industry Association (HIA), nationwide, the volume of homes sales rose 0.9 per cent in March following a 5.2 per cent fall in February.
'Rising rates have run headlong into pre-existing supply side obstacles related to land supply, planning delays, and distorting levels of taxation and charges applying to new housing,'' HIA chief economist Dr Harley Dale said.
The Reserve Bank has lifted interest rates five times since October to 4.25 per cent in order to contain domestic inflation and keep the economy on the path to sustainable growth.
Even while private sector house sales rose 1.9 per cent in the month, the sale of multi-units dropped by 8.7 per cent, suggesting little relief for Australia's affordable housing shortage, HIA said.
The government's National Housing Supply Council Report, released this week, estimated a nearly 200,000 house shortfall this year alone.