The HIA New Home Sales report – a monthly survey of the largest volume home builders in the five largest states – provides an early indication of trends in the residential building industry.
During March 2018, new house sales declined in three of the five markets covered by the report. The largest reduction in house sales occurred in South Australia (-11.4 per cent), followed by NSW (-10.2 per cent) and Victoria (-7.2 per cent). Two states bucked the overall trend, with the largest increase in new house sales in Western Australia (+26.2 per cent) and more measured growth occurring in Queensland (+2.7 per cent).
“Detached house sales fell again in March – meaning that declines have occurred in each of the first three months of 2018,” commented HIA Senior Economist Shane Garrett.
“New detached house sales were down by 2.0 per cent during March following a 0.7 per cent fall in February,” added Mr Garrett.
“The reduction in new house sales in Sydney and Melbourne is likely to be the result of tighter lending policies for investors being imposed by APRA.
“There has been a welcome increase in first home buyers participation which has partially offset the fall in investor involvement in the market.“Economic recovery is underway in Queensland and WA – and these two states were the only ones to see new house sales rise during March. Detached house building has always been of considerable importance in these two markets.
“HIA’s new house sales index is a leading indicator of activity on the ground. Based on today’s results, new house building activity is likely to move lower on a national basis over the next few months,” concluded Shane Garrett.
