Apartments are driving the increase in new home sales, according to the latest survey which recorded the second consecutive rise for sales in November 2014.
The Housing Industry Association’s New Home Sales report recorded an increase in sales of 2.2% in November. However, the November increase was down from a 3% increase in October, which provides further evidence to suggest the property market is cooling.
The November increase was buoyed by the “renewed upward momentum” in the multi-unit segment, says HIA’s chief economist Harley Dale, and it’s a trend that is “unlikely to be reversed” when the December results come through.
“Sales of multi-units surged in both October and November to reach their highest level since September 2003. Detached house sales dipped by 1.5% in November 2014 and are not displaying the upward punch of their multi-unit counterpart,” Dale said.
However, Dale noted upward momentum was evident in the construction of both the multi-unit and detached housing segments.