In a positive indicator for residential housing construction, new home sales posted strong growth of 7.5 per cent in November 2013, according to the Housing Industry Association (HIA).
In the latest HIA New Home Sales report – a survey of Australia's largest volume builders – the 7.5 per cent increase in total seasonally adjusted new home sales was shown to be driven by a 30.5 per cent jump in multi-unit sales, together with a 3.6 per cent lift in detached house sales.
“Over the three months to November 2013, the volume of detached house sales increased in all five surveyed states, while the downward trend evident in multi-unit sales has now reversed due to strong monthly outcomes in both September and November of last year,” said HIA chief economist Harley Dale.
At 7.5 per cent, the growth recorded for the month was the highest growth rate since January 2010.
The strength of new home sales is seen as a reliable indicator of the future health of the residential construction industry.
“The upward momentum evident in new home sales since the closing stages of 2012 continued late last year – that is a good sign for residential construction activity in 2014,” said Mr Dale.
“We need to see upward momentum in these leading indicators continue throughout 2014. For new home sales, the first ‘milestone’ to look out for will be sales once again reaching the volumes experienced in the first half of 2011.”
The largest increase in new detached house sales for the three months was recorded in South Australia, which recorded a surge of 26.8 per cent, while New South Wales recorded only 0.1 per cent growth in sales.