South Australian new home sales spike
Low interest rates and improving real estate conditions appear to be having an effect on the South Australian property sector after recent figures revealed a surge in new home sales.
The Housing Industry Association (HIA) New Home Sales report showed the number of people purchasing detached dwellings increased in the state by 3.2 per cent during October.
Following a rise of 2.8 per cent in September, the latest figures indicate that confidence is returning to the state's property market, with more people seeing now as a good time to get a foot on the real estate ladder.
HIA executive director South Australia Robert Harding said the introduction of more generous first time buyer grants also seemed to be having an impact on consumer sentiment.
"October saw the state government increase assistance for new home buyers, while nationally, the RBA (Reserve Bank of Australia) cut the official cash rate by 25 basis points to 3.25 per cent," Mr Harding commented.
"Policy settings have headed in the right direction to give activity a kick-start, however it will be meaningful reform that will pull South Australia's residential construction sector up to a sustained, healthier and more appropriate levels of activity," the expert added.