New homes sales in Australia pared back from record highs in May, as the number of detached house sales fell, despite the number of new apartments sold during the month hitting a fresh high.
The Housing Industry Association said today the number of new homes sales in May faltered, declining 2.3 per cent and ending four months of consecutive increases in the figures.
"The four-month winning streak came to a modest end in May," HIA chief economist Harley Dale said.
“The decline was driven by a 5.1 per cent dip in detached house sales -- reflecting weaker monthly demand in four out of the five states surveyed," Mr Dale said.
But sales of newly constructed multi-units -- or apartments -- hit a new record, increasing by 7.6 per cent during May. Sales of new apartments have now increased 26.7 per cent over the three months to May.
Mr Dale said the headline figure decline was a softer result at face value, but the underlying conditions in the home building industry were healthy, particularly in New South Wales and Victoria.
"Strength in detached houses sales is evident in NSW and Victoria, with growth in the May 2015 ‘quarter’ of 5.2 per cent and 6.2 per cent, respectively," Mr Dales said.
Detached house sales fell by 2.3 per cent in NSW, 9.9 per cent in Victoria, 8.1 per cent in Western Australia, and by 5.2 per cent in South Australia. Queensland, meanwhile, posted a modest 3.3 per cent increase in the month.
However, over the three months to May, Queensland detached home sales were down by 7.5 per cent. South Australian sales dropped 8.1 per cent, and WA sales fell 1.3 per cent.