Current at: 02 March 2009
New home sales surged by a strong 19.3 per cent in January according to the latest survey by the Housing Industry Association (HIA), Australia’s largest building industry association.
“These results support anecdotal evidence of a strong resurgence in first home buyer activity in our state,” said HIA Acting Executive Director Robert Harding.
“The best home affordability conditions in years and the boosted federal First Home Owner’s Grant have propelled the sale of new detached houses, with Victorian new home sales up by a healthy 16 per cent in the three months to January.”
“Compared with the same three-month period last year, sales are now only down by 2 per cent,” Mr Harding said.
“Some pull-back in sales is likely in the February results, but the upward trend is likely to remain in tact,” Mr Harding said.
In Victoria, private sector house approvals fell by 4.6 per cent in December, indicating a continued softness in rental investor activity.
“A sustained recovery in new home construction will rely on trade-up buyers and investors returning to the market, Mr Harding said.
“It will also rely on the timely procurement of the planned 20,000 new public and community housing dwellings nationally, 5000 of which are planned for Victoria, Mr Harding added.
“The unlocking of these projects caught up in the credit crunch will go a long way to ensuring a broad based private sector housing recovery.”
For the month of January detached new home sales increased by 24.2 per cent in South Australia and were up by 10.9 per cent in Queensland and 0.9 per cent in Western Australia. Sales fell by 5.8 per cent in New South Wales. Detached home sales were up over the three months to January 2009 in New South Wales and Victoria.