The HIA New Home Sales Report, a survey of Australia’s largest volume builders, recorded an increase in August 2015, with the level of activity only just short of the high reached in April this year. They report a decline in unit sales, but a rise in houses.
“Total seasonally adjusted new home sales increased by 2.3 per cent in August this year, driven by a 3.5 per cent rise in detached house sales,” said economist, Diwa Hopkins. “Multi-unit sales, however, declined by 1.7 per cent.”
“It is becoming increasingly apparent that total sales activity has already peaked this year, but today’s update shows that sales are remaining elevated.”
“The overall developments in both HIA New Home Sales and the equivalent ABS measure, building approvals, are consistent with our outlook for actual new home building activity in 2015/16.”
“We’re forecasting total dwelling commencements to ease back from what we expect to have been the peak level in the financial year just passed, but still remain elevated.”
Detached house sales increased by 3.5 per cent in August 2015, but were 5.1 per cent below the monthly peak that occurred back in April 2014. For ‘multi-units’, it is May 2015 that is shaping up to represent a peak in monthly sales, with declines occurring in each of the subsequent months. Multi-unit sales in August this year were down from the May level by 8.5 per cent.
In the month of August detached house sales increased in four out of the five the mainland states. Detached house sales increased by 10.2 per cent South Australia, 7.0 per cent in Queensland, 3.2 per cent in New South Wales and 3.4 per cent in Victoria. In Western Australia, detached house sales declined by 1.4 per cent.
