Property still strong as WA house sales surge 13% in August

The number of new homes sold in Australia rose modestly in August, reflecting gains in the Western Australian, South Australian, and Queensland markets.

HIA's New Home Sales figures released today show that the sale of new homes and units among Australia's largest builders and developers increased by 2.1 per cent in August to 7,667 dwellings.

Detached house sales increased by 13.3 per cent in Western Australia in August, the strongest rise of any state, following a 24.3 per cent drop the previous month.

Australia's peak building industry body, HIA, said that despite the increase in August, sales levels in WA remained well down on those seen in 2005.

HIA's executive director in WA John Dastlik said that while the improvement in sales was welcome, it may also be misleading.

"The increase in August probably reflects delayed land titles coming on stream as much as anything," Mr Dastlik said."New home sales have been trending down in Western Australia throughout 2006."

"It is no coincidence that new home sales have come off the boil in the same year as a shortage of land has become a critical issue for our industry. The marked decline in sales in 2006 compared to last year highlights the downside risk to new housing in this state."