New home sales surge
Confidence appears to be returning to the residential property sector, with recent figures showing an increase of Australians breaking into the real estate market last month.
The Housing Industry Association (HIA) New Home Sales report showed a 3.4 per cent increase in the purchase of new dwellings around the nation in October - modest but positive growth, experts say.
The sale of multi-units surged by 31.4 per cent during the same period, while detached house sales dropped by two per cent.
HIA chief economist Harley Dale commented: "Scratching below the surface, new home sales in October were a mixed bag. Within the weak headline result for detached houses there were modest increases for New South Wales, South Australia, and Western Australia, albeit from very low bases."
But more fiscal action is required from the Reserve Bank if the market is going to make a stronger, broader property recovery, the economist asserted.
"Further actions on rates next week would bolster the chances that we see a sustained recovery in new home building in 2013. Right now the jury is still out on that," Mr Dale added.
Seasonally adjusted new detached house sales in October increased by 4.7 per cent in New South Wales, 3.2 per cent in South Australia and 3.7 per cent in Western Australia.
In comparison, detached house sales dropped by 4.3 per cent in Queensland and 12.1 per cent in Victoria.