New house sales hit decade high: HIA
New house sales rose to a decade high through November as low rates, government stimulus and a shift from apartments fuelled buying.
The number of new house sales rose to a decade high through November as stimulus continued to support the construction industry.
The Housing Industry of Association’s (HIA) monthly New House Sales report showed buyers had purchased 15.2 per cent more houses last month than in November 2019 in Australia’s five largest capital cities.
Record levels of construction follow a growth trend that has been underway since the federal government's HomeBuilder stimulus was introduced in June. In the three months to November, sales were 41.1 per cent higher nationally on last year’s figures, with significant rises in NSW and Victoria.
HIA economist Angela Lillicrap said the data was collected ahead of the extension of HomeBuilder, which was announced at the end of last month.
“The extension of HomeBuilder should see strong sales of new homes reach into 2021,” Ms Lillicrap said.
“The strength of New Home Sales is a positive sign that home building will support the broader economy as we enter 2021.”
“HomeBuilder is not the only reason for the strength in New Home Sales, although it was the trigger for improved market confidence. Low interest rates, house price growth and a change in consumer preferences away from apartment-style living, have all seen demand for detached housing rise. Many households have diverted their expenditure from travel and entertainment towards housing, including renovating their home.”
New sales in Victoria rose 20.6 per cent as the state emerged from stage four restrictions, while buyers in NSW have begun to catch up with other markets, up 15.9 per cent over November compared to the same time last year.
In the three months to November 2020, all regions reported a rise. Western Australia led the pack with growth of 108.8 per cent, followed by South Australia (57.6 per cent), Queensland (34 per cent), Victoria (22.2 per cent) and New South Wales (20.7 per cent).
The monthly HIA survey is considered an indicator of future detached home construction.
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