Sales of detached homes have flat-lined in Australia as the pace of apartment sales rises, the Housing Industry Association says,
According to the HIA's monthly report, new home sales in January lifted by 1.8 per cent, in seasonally adjusted terms.
The growth was mainly found in multi-unit, or apartment, sales, which surged 9.9 per cent in the month, while sales of detached homes increased by just 0.1 per cent.
"There is an upward trend evident for multi-unit sales, but sales for detached houses are essentially flat-lining,” HIA chief economist, Harley Dale, said.
Mr Dale said detached house sales appear to have peaked in New South Wales and Western Australia, and the easing momentum was occurring from a very high starting point.
"These two markets have been the heavyweights of the current new housing cycle,” he said.
Detached homes sales in January lifted by 5.6 per cent in South Australia, 2.7 per cent in Victoria and 1.2 per cent in NSW, but declined 1.5 per cent in Queensland and by 4.0 per cent in Western Australia.
Over the last three months to January, detached house sales had surged by 15.9 per cent in Queensland, while declining 3.6 per cent in South Australia and 11.3 per cent in NSW. Detached sales over the quarter were up by just 1.7 per cent in Western Australia.
“Sales in Victoria and Queensland are displaying a modest upward trend," Mr Dale said, while "continuing a year-long downward trend in South Australia".
But Mr Dale said the headline result was consistent with further growth in new home construction in the fiscal year, following a bumper 2014 financial year.
"There is no doubt that the new housing sector is the star of Australia’s domestic economy," he said.