New home sales in Western Australia have resumed the downward trajectory of 2015 following a modest rise in April, dropping by 8.1 per cent in the month of May, according to the Housing Industry Association.
New home sales in Western Australia have resumed the downward trajectory of 2015 following a modest rise in April, dropping by 8.1 per cent in the month of May, according to the Housing Industry Association (HIA).
April was the first month this year where new home sales increased, a 0.9 per cent rise on the previous month.
However, the HIA said the overall profile in WA was one of modest decline, following the record high in October last year.
“There is an entrenched decline in new detached house sales, consistent with a significant rather than substantial decline in detached house construction in 2015,” HIA chief economist Harley Dale said.
Nationally, detached house sales were down 5.1 per cent in May, but multi-unit sales were up 7.6 per cent, resulting in a 2.3 per cent fall overall.
May was the first month in 2015 where new home sales declined collectively across all states and territories.
"The decline was driven by a ... dip in detached house sales, reflecting weaker monthly demand in four out of the five states surveyed,” Dr Dale said.
"This is a softer result at face value, but delving beneath the surface reveals an aggregate profile of healthy new home building conditions in 2015.
“The mature stage of the new home building cycle primarily reflects further momentum in the multi-unit sector, together with persistence of healthy conditions in New South Wales and Victoria.