17/01/2020 - 12:09

New house sales grow in WA as recovery approaches

17/01/2020 - 12:09

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Western Australia recorded the largest new home sales growth over the quarter of any Australian state, as the broader housing market begins to show signs of a recovery.

WA's new house sales grew 14.4 per cent and building approvals grew 5.6 per cent over the quarter.

Western Australia recorded the largest new home sales growth over the quarter of any Australian state, as the broader housing market begins to show signs of a recovery.

The latest New Home Sales report from the Housing Industry Association showed a 14.4 per cent rise in new home sales in WA, while it also showed an increase in building approvals in WA, as a trailing indicator of new home sales, rising 5.6 per cent in the three months to November 2019.

The approvals figure, however, remains 6 per cent lower than in the same period last year.

Overall housing market conditions improved, with national new house sales up 2.8 per cent over the quarter, but also remain 5.7 per cent lower than in the same period last year.

HIA economist Diwa Hopkins said the improvement over the quarter occurred alongside increased home lending and higher house prices in key Sydney and Melbourne markets.

“The withdrawal of APRA’s counter-cyclical regulatory interventions, followed by a fresh round of cuts to the official interest rate, was among measures which arrested previously-deteriorating market conditions,” Ms Hopkins said.

“Add to that federal income tax cuts and then the government issuing its first tranche of home loan deposit guarantees, and a growing number of households previously sitting on the margins of the housing market are finding they can now enter.”

Private new house sales also grew in Queensland by 2 per cent on the previous quarter and by 1.6 per cent in Victoria.

Meanwhile, South Australia and NSW recorded a drop in sales, falling 2.5 per cent and 0.5 per cent respectively.

But Ms Hopkins concluded overall housing market conditions were set to stabilise this year before returning to growth further down the track.

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