New home sales in Western Australia posted their second consecutive month of growth in December, but transactions are still significantly lower than where they were 12 months ago, according to new data released today.
The HIA-JELDWEN New Home Sales report showed an impressive 25 per cent increase over the December quarter in Western Australia, but sales were still down by 6 per cent on the previous year.
Nationally, new home sales dropped by 4.9 per cent in December, compared to a 12 per cent increase over the month in WA.
The HIA said it was still debatable whether the results were the greenshoots of recovery in WA, but the industry was cautiously optimistic.
“Lower interest rates can help lift Western Australia out of its position as one of the worst performing states in terms of housing,” the HIA’s report said.
“However, it is policy reform in the state that is a necessary and an increasingly important input in the mix of strategies to improve WA’s lagging housing sector which sits against a backdrop of growing underlying demand, given the accelerating rate of interstate and international migration.”
The new home sales report underlines the increased presence of first homebuyers in the WA market, with figures released yesterday by analysts RP Data showing median house prices fell by 2.1 per cent over the quarter.
The latest figures indicate the total number of first home owners grants paid in the December quarter was up 7 per cent on the September quarter.
