Demand for new homes rises nationally
The sale of brand new residential properties across Australia was strong in November 2013, which may be an encouraging sign for anyone thinking of buying a home in the near future.
According to information from the Housing Industry Association (HIA), new home sales throughout the country reached a two-and-a-half year high in November after increasing by 7.5 per cent. This was one of the fastest monthly growth rates seen since January 2010, the HIA said in a January 10 statement.
"The upward momentum evident in new home sales since the closing stages of 2012 continued late last year - that is a good sign for residential construction activity in 2014," said HIA Chief Economist Harley Dale.
The HIA figures also showed the 7.5 per cent increase was largely driven by a notable rise in multi-unit sales, which grew by a staggering 30.5 per cent. This was accompanied by a 3.6 per cent jump in sales of detached houses.
Some of the strongest areas for new detached home sales increases were South Australia (19.1 per cent), New South Wales (8.1 per cent) and Queensland (16 per cent), possibly due to the strong housing approval numbers in the states.
Housing approvals show strength
While the number of new home sales increased over November, data from the Australian Bureau of Statistics (ABS) showed that housing approvals have also been strong over the same period. Strong building approval rates could be a contributor to the rising number of new home sales as more brand new property enters the residential real estate market.
ABS data showed that building approvals across the whole country rose by 2.4 per cent in trend terms after rising for 13 months.
South Australia experienced one of the largest rises in November for dwelling approvals, after recording growth of 23.2 per cent, seasonally adjusted, according to the HIA.
Following this state was Queensland and New South Wales, which possessed rises of 8.3 percent and 14.5 per cent respectively.
"It is vital that strong levels of home building continue so as to ensure that housing needs are met across all regions. This is all the more important in the context of the chronic housing underbuild over the past decade," said HIA Senior Economist Shane Garrett in a January 9 statement.