HIA New Home report released, shows split market
THE latest HIA New Home Sales report shows detached housing is outperforming the rest of the residential market.
"Detached housing has gained momentum as non-detached housing, primarily mid/high density product, has lost momentum over 2013 to date," said HIA Chief Economist, Dr Harley Dale.
"The leading home building indicators of both new home sales and building approvals are highlighting this trend."
The HIA New Home Sales report, a survey of Australia's largest volume builders, showed that total seasonally adjusted new home sales increased by 3.4 per cent in June 2013, representing a fourth consecutive rise. Detached house sales increased by 7.3 per cent at the end of last financial year, but multi-unit sales dropped by 17.5 per cent.
"Last financial year was a tale of two halves for new home sales. The first stanza was dominated by weakening detached house sales up against stronger multi-unit sales, the latter marked by an improving detached house segment occurring as the multi-unit market lost momentum," said Mr Dale.
"The overall result was that new home sales fell by 4.3 per cent in 2012/13 when compared to the 2011/12 financial year.
"Given it was a weaker year overall for new home sales it has been very encouraging to observe upward momentum build as we moved through 2012/13,
"There is still a long way to go. New home sales volumes are 27 per cent down on their long term average. A range of leading indicators beyond just new home sales are yet to provide evidence of Australia approaching the healthy and geographically broad-based new home building levels required by our growing population and transitioning economy."
In the month of June 2013 detached house sales increased by 19.7 per cent in Victoria, 7.1 per cent in Western Australia, 3.9 per cent in New South Wales, and 0.5 per cent in South Australia. Detached house sales fell by 11.0 per cent in Queensland.