New housing sector 'star of Australia’s domestic economy'

by Maya Breen04 Mar 2015
The new home building sector is set to continue its upward trend, according to new research from HIA.
The latest from the HIA New Home Sales Report, a survey of Australia’s largest volume builders, shows the new home building sector will continue to rise.
“Total seasonally adjusted new home sales posted a modest increase of 1.8 per cent in January 2015, providing a good start for the new year,” said HIA chief economist Harley Dale.
“The headline result is consistent with further growth in new home construction in 2014/15, following a very strong year in 2013/14. There is no doubt that the new housing sector is the star of Australia’s domestic economy.”
Dale said leading indicators like new home sales suggest divergent conditions will continue in 2015.
The results show a 9.9 per cent rise in ‘multi-unit’ sales and a 0.1 per cent increase in detached house sales, based on January new home sales.
“There is an upward trend evident for multi-unit sales, but sales for detached houses are essentially flat-lining,” Dale said.
He said for the states, detached house sales have reached the top in New South Wales and Western Australia, but the ‘modest easing in momentum’ is found at a very high starting point.
“These two markets have been the heavyweights of the current new housing cycle,” Dale said.
The report shows sales in Victoria and Queensland are still heading upward but iin South Australia detached house sales are continuing a year-long downward trend in South Australia, indicative that new housing conditions in this market will remain the weakest of the five mainland states, for the short term.
In January detached house sales rose by 1.2 per cent in New South Wales, 2.7 per cent in Victoria, and 5.6 per cent in South Australia. Detached house sales declined by 1.5 per cent in Queensland and 4.0 per cent in Western Australia.