Australian new home sales continued to push higher in April.
According to the HIA sales rose by 0.6%, the fourth consecutive monthly increase, with sales for detached houses and units rising by 0.4% and 0.9% respectively.
From a regional perspective detached house sales rose in New South Wales (7.2%), Victoria (2.7%) and Western Australia (0.9%), offsetting declines in Queensland (-9.0%) and South Australia (-1.9%).
From a quarterly perspective, and consistent with the increasingly divergent economic performance across the country, detached home sales in New South Wales and Victoria rose by 0.5% and 7.4% respectively, overshadowing declines of 4.7%, 4.4% and 1.6% in South Australia, Queensland and Western Australia.
Here’s the HIA’s chief economist Harley Dale on the report.
“New homes sales have increased in each of the first four months of 2015. While the rise of 0.6 per cent in April was the slowest growth pace of the four months, this is still a strong result off the back of a healthy March quarter.
The profile for new home sales in 2015 is consistent with a new home building cycle where further upward momentum resides largely in the ‘multi-unit’ sector and where the eastern seaboard states are driving the further growth”.
With unit approvals now consistently outnumbering those for detached housing, as Dale suggests, growth in sales, if it indeed occurs, will almost certainly derive from high-density housing.