Australian New Home Sales Grew Anaemically In November

Post by NeilMc on January 5, 2010 · Under Australian Economy, Business News, Property Market · Comment 

The Housing Industry Association (HIA) says new home sales in Australia increased by an anaemic 0.3 per cent during the month of November, largely as a result of a lack of available funding.

Detached home sales rose by 0.8 per cent, but that increase was offset by a 4.9 per cent fall in multi-unit sales.

Harley Dale, chief economist for the HIA says the moderate increase in detached home sales suggests that investment properties and owner occupied upgrades did not provide the same level of strong support for volume builders as they usually do.

“The multi-unit sector, meanwhile, continues to look extremely weak as the medium/high density end of the sector faces an ongoing lack of available credit. This situation does not auger well for an easing in very tight rental market conditions over 2010.” Dr Dale said in a statement.

Leading indicators have suggested that there will be a recovery in the construction of new residential properties this year. However the new home sales result, according to Dr. Dale shows that a broader based recovery is required.

“A big question mark hangs over the magnitude and sustainability of the recovery. There are a considerable number of obstacles blocking the prospect of a strong up-cycle in new home building including costly planning delays, the re-emergence of land and skilled labour shortages and rising interest rates. “ he said.

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