Jul
24

Queensland leads new house sales, growing at double the pace of NSW

Realestate.com.au

QUEENSLAND is leading the nation in new house sales growth after an absolute blinder in May when it grew at double the pace of its closest state rival New South Wales.

inside house 1

 

The last Housing industry Association New Homes Sales Report, which surveys Australia’s largest builders, found that in May total new detached house sales grew by 2.2 per cent at a time when unit sales were down by 2.6 per cent.

“Queensland experienced the largest increase in new detached house sales during the month (+31.1 per cent) followed by NSW (+16.8 per cent),” the report said.

“The largest reduction in sales occurred in South Australia (-15.6 per cent). Reductions also affected the markets of Victoria (-14.7 per cent) and Western Australia (-3.4 per cent).”

Queensland’s “very robust growth” of 31.1 per cent in May compared favourably with the result 12 months earlier when new detached house sales rose by 23.3 per cent.

“The increase in sales during May took the volume of new detached house transactions in Queensland to its highest since November 2016.”

BCM Property Home liftout. Outdoor rooms story wit

Outdoor room at Metricon display home in Gainsborough Greens Display Village at Pimpama on the Gold Coast.

It was a good comeback for Queensland given sales had fallen for five consecutive months up until April 2017, according to HIA.

“Over the three months to May 2017, new detached house sales in Queensland actually eased by 3.7 per cent compared with the previous quarter and were 5.4 per cent lower than the same period a year earlier. ABS data indicate that private detached house approvals in the state during April 2017 were down by 0.9 per cent compared with the previous month and were down by 8.3 per cent compared with a year earlier.”

 Nationally HIA senior economist Shane Garrett expected to see a modest contraction in detached house starts across the country through to the end of the decade with a much bigger drop in multi-unit commencements.

He said meeting Australia’s housing needs had become increasing challenging given populations spread and concentration as outlined in yesterday’s Census results.

“With new home building set to reduce, it is important that government policies focus on allowing our industry to deliver the requisite supply of new housing in an affordable fashion.”

Leave a Reply