14/10/2020 - 15:37

New home sales slow

14/10/2020 - 15:37

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After a surge in new home sales in August, new home sales for Western Australia fell in September, but were still 36.8 per cent higher than the June quarter.

New home sales slow
New home sales in WA fell during September, but remained at historically high levels. Photo: Gabriel Oliveira

After a surge in new home sales in August, new home sales for Western Australia fell in September, but were still 36.8 per cent higher than the June quarter.

WA’s new home sales declined 11.5 per cent for the month of September, but were still 147.5 per cent higher than the same period last year.

HIA WA executive director Cath Hart said the decline was not directly a reflection of lower consumer demand, and said new home sales still remained at historic highs.

“The decline in new home sales in September is because many builders are capping their monthly sales,” Ms Hart said.

“They’re doing this so they can navigate shortages in land and labour, and delays in lending and local government, as they try to meet the difficult timeframes required for work to start on site for the grants.

“Even with those caps in place, they’re still worried that some consumers will miss out because industry is struggling to meet the required timeframes to start work.

“That’s why we’re seeking an extension for the start times on site for the schemes – we’re not asking for more money, just more time to deliver.”

Ms Hart said a later start time would help extend the economic benefits of the schemes into 2022, while giving consumers confidence as well as providing support for the safety and sustainability of the residential building workforce.

“We saw a sharp increase in sales straight after the stimulus packages were announced which propelled activity from an historic low to an historic high in a short space of time,” Ms Hart said.

“Sales over the four months that the schemes have been operating are 143.5 per cent higher than the previous four months, and well above levels that we have seen for many years.”

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