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New home sales lift in June: HIA

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By a staff reporter

New home sales lifted for the fourth consecutive month in June, but the outlook for the property sector remains far from certain, according to a private survey.

The Housing Industry of Australia new home sales report showed that total seasonally adjusted new home sales increased by 3.4 per cent in June.

In the same period detached house sales increased by 7.3 per cent, but multi-unit sales dropped by 17.5 per cent.

HIA chief economist Harley Dale said the report reiterated the changing composition of new home building in 2013.

"Last financial year was a tale of two halves for new home sales," Dr Dale said.

"The first stanza was dominated by weakening detached house sales up against stronger multi-unit sales, the latter marked by an improving detached house segment occurring as the multi-unit market lost momentum.

"The overall result was that new home sales fell by 4.3 per cent in 2012/13 when compared to the 2011/12 financial year."

Dr Dale said detached housing has gained momentum as non-detached housing, primarily mid/high density product, lost momentum in the year to date.

"The leading home building indicators of both new home sales and building approvals are highlighting this trend."

Quick Summary: 
Report shows fourth consecutive monthly increased, sector outlook still uncertain.
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