New home sales figures grew 1.6% in May, led by gains in Victoria, NSW and South Australia.
The Housing Industry Association reports that new home sales reached their highest level in 18 months, after record lows in 2012. New home sales grew 3.9% in April.
Detached house sales grew by 4.3% in New South Wales, 8.8% in Victoria and 6.% in South Australia but fell by 2.2% in Queensland and 10.3% in Western Australia.
Multi-unit sales grew 5.7%, after a 9.4% fall in April.
“A range of housing indicators, including new home sales, suggest Australia experienced modest growth in new residential construction in 2012/13, with some momentum in activity set to carry into the fresh financial year,” said HIA chief economist Harley Dale.
“The key is whether a new home building recovery can be sustained and at a growth rate sufficient to meaningfully assist the Australian economy with its rebalancing acts.”
Business Insider Emails & Alerts
Site highlights each day to your inbox.