New home sales were flat in September, despite sales of multi-units reaching a new cyclical peak in the month, according to the Housing Industry Association's new home sales report.
Seasonally adjusted house sales fell by 2.3 per cent during the month to be down by 6.5 per cent over the September quarter.
But multi-unit sales grew 11 per cent in the month, following a strong increase in the previous month, taking sales up by 8.7 per cent over the September quarter.
“A moderate decline in detached house sales has been driving an overall loss of momentum in new home sales,” HIA chief economist Harley Dale said.
Mr Dale said the strong result shows that the multi-unit dwelling category is bouncing back from a slump a few months ago.
"The overall profile for new home sales is consistent with a healthy year for dwelling construction in 2014/15," he said.
"It would be desirable to see that outcome in detached and low density construction in addition to the high rise sector."
Detached house sales increased by 13.4 per cent in Queensland in the month of September, but slumped in other states.
Detached house sales for the month fell by 9.9 per cent in New South Wales, 5.6 per cent in Western Australia, 3 per cent in South Australia and 2.4 per cent in Victoria.