New home sales drop, HIA says

Font size :
A decline has been seen in Australia’s new home sales for the first time this year.
 
The Housing Industry Association (HIA) figures showed sales of new dwellings dropped by 2.3% in May.  They said the result was mainly driven by a 5.1% drop in sales for detached homes.
 
HIA also said in its report that sales for both apartments and townhouses continued to grow strongly, by 7.6% in the month and 26.7% in the past three months.
 
“The multi-unit sector, driven by apartment sales ... did mitigate the overall decline in new home sales that was driven by detached housing,” HIA chief economist Harley Dale was quoted as saying by ABC News.
 
“These are two markets where we talk a lot about the medium/high density apartment construction that's being undertaken in Sydney and in Melbourne. We're also seeing a lot of semi-detached townhouse-type product.”
 
Dale added that Australia’s three years of healthy growth in housing construction should be starting to have an impact on affordability.
 
"These sorts of numbers are starting to make a dent in what was a very long-term decline in new home building activity that was primarily reflective of a very weak NSW market. That state under-built for the better part of a decade," he said.
 
"We've got another 12, 18 months of very healthy building ahead of us for NSW if we are to try and restore some kind of balance to that considerable undersupply that built up over a very long period of time."
 

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Friday, Sep 22, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords