Australian new home sales in April up 2.9% from previous month on seasonally adjusted basis, marking fourth consecutive gain; detached homes sales up 1.8%, marking sixth consecutive increase: Housing Industry Assn.
May 29, 2014
– New home sales posted a fourth consecutive gain in April 2014, providing an important positive signal for broader economic activity, said the Housing Industry Association, the voice of Australia’s residential building industry.
Private sector new home sales enjoyed a monthly gain of 2.9 per cent to be up by 6.0 per cent over the three months to April this year. Multi-unit sales increased by 9.3 per cent in April. Detached house sales chimed in with a 1.8 per cent rise which marked the sixth consecutive increase for this component.
“The recovery in new home building is a key plank in Australia’s economic growth, as evidenced by the March quarter construction work done figures released yesterday,” said HIA Chief Economist, Dr Harley Dale.
“Momentum in new home building activity will carry over into the June quarter, while the trajectory evident in coming months for leading indicators such as new home sales and building approvals will provide crucial insight to the growth prospects for the broader economy in 2014/15,” noted Harley Dale. “A healthy April for new home sales provides a promising start to the June 2014 quarter.”
“It is not just the magnitude of a new home building recovery that is important, but also the breath and duration of that recovery. Market forces are to date largely overcoming the excessive tax and regulatory environment in which the sector operates, while the structural shortage of skilled labour has yet to fully rear its head in the cycle,” remarked Harley Dale.
“To unleash the productivity dividend the new home building sector can provide the Australian economy in addition to the positive impetus already in play, policy makers across all levels of government need to address these structural impediments,” added Harley Dale.
In April 2014 seasonally adjusted detached house sales increased by 6.4 per cent in Western Australia, 5.2 per cent in New South Wales, and 0.5 per cent in Victoria. Detached house sales fell by 2.1 per cent in Queensland and 6.0 per cent in South Australia.
Industry Intelligence Editor's Note: This press release omits select charts for editorial clarity. Click here to view the full report.