New home sales have hit a five-year high, as Australia's record-low interest rates continue to support a domestic property boom.
The Housing Industry Association's latest new home sales report showed sales of new housing surged 4.4 per cent in March, underpinned by continued heat in the booming apartment market.
March's figures take sales volumes to their highest level since early 2010.
Sales of new multi-units, or apartments shot up 11.3 per cent during the month, while sales of new detached homes increased 2.6 per cent during the same period.
“The monthly rise in both the detached and multi-unit segments of the market is an encouraging result. However, the broader trend is that growth over the past year has been driven by multi-unit sales, while detached house sales have tracked sideways," HIA economist Diwa Hopkins said.
Yesterday the Reserve Bank of Australia slashed the official cash rate to a record-low 2 per cent, after a previous cut to 2.25 per cent in February.
“Lower lending rates will provide added support to residential construction activity, which is emerging as a key area of growth mitigating the effects of the downturn in mining investment and construction,” Ms Hopkins said.
On Monday, the Australian Bureau of Statistics released data showing building approvals hitting a fresh record high in March, as the surge in the number of apartments continued to increase.
Apartment approvals have surged by 59.2 per cent over the twelve months to March, the ABS said.
“The residential construction sector continues to be the main bright spot in the broader domestic economy," Ms Hopkins said.
Sales of new detached homes increase by 5.9 per cent in Victoria, 4.2 per cent in NSW, and 4.2 in Western Australia during March, but fell by 5.8 per cent in South Australia, and by 2.3 per cent in Queensland.