According to the latest data from Australia’s Housing Industry Association (HIA), total seasonally adjusted new home sales increased by 1.1% across the country in February. Sales volumes are now just above the previous peak of April 2014.
A breakdown of the figures shows that apartments are selling more than detached homes, with flat sales up 11.1% and houses down 1.3%, though there are considerable regional variations. The figures show that detached house sales in the month increased by 1.5% in Victoria and by 0.2% in Queensland, while they fell 4.8% in New South Wales, 2% in South Australia and 2.9% in Western Australia.
“This is another very strong result for Australia’s national new home building sector. In January, new dwelling approvals reached their highest level on record and now in February that activity remains at exceptionally high levels, with a solid pipeline of activity set to remain in play over the coming months,” said HIA senior economist, Shane Garrett.
The HIA data also shows that new home approvals in February were 3.2% lower than in January but still at their second highest level since figures began 32 years ago.
“A steady pipeline of new homes represents the most effective solution to alleviating housing affordability pressures,” added Garrett. “Governments at all levels must work to ensure supply constraints do not impede the continuation of elevated levels of new home construction.”