New residential property sales regained ground in March
A report from the Housing Industry Association (HIA) has shown the number of sales of new residential properties increased by 4.2 per cent in March (seasonally adjusted).
These numbers are comparable to figures reached 12 months ago.
HIA Chief Economist Harley Dale was positive about this result, but was wary of hurdles to a full recovery.
"The key will be whether a recovery can gather legs from here in an environment where the tax and regulatory costs on new housing remain excessive (and are borne by the final home buyer) and where many new home building contracts continue to fall over because a final finance approval is declined," he said.
Mr Dale followed this by saying: "Economic reform directed at residential construction boosts new housing supply, economic activity and employment, and installs a vital cog in the wheel of fiscal recovery, namely revenue growth."
His comments come only a few days after the announcement of the reforms to the Victorian first time buyers grant.
In order to encourage new home construction, Victorians will no longer receive a $7,000 grant to purchase a residential property, but instead they will get $10,000 only if the home they buy is brand new.