Investors, upgraders drive new home sales

02/03/2010

The Housing Industry Association’s (HIA’s) New Home Sales report, a survey of Australia’s large volume residential builders, rebounded by 9.5 per cent in January 2010.

The HIA said the January result was an encouraging early sign that upgrade owner occupiers and investors may be coming into the new home building market in sufficient numbers to offset the withdrawal of stimulus to first time buyers.

HIA Chief Economist, Dr Harley Dale, said that private sector detached house sales increased by 10.1 per cent in January 2010, the first decent result since August last year.

Multi-unit sales recorded a second consecutive increase in January, rising by 4.1 per cent following a 14.5 per cent jump in December 2009. Detached new home sales increased by 3.1 per cent in New South Wales and were up by 17.1 per cent in Victoria, 6.3 per cent in Queensland, 6.6 per cent in South Australia, and 12.2 per cent in Western Australia.

Source: HIA