24/09/2009 - 09:33

WA new home sales surge 15.1% in August

24/09/2009 - 09:33

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Detached new homes sales in Western Australia surged 15.1 per cent in August, spurred by a fresh wave of first time buyers, a new survey shows.

WA new home sales surge 15.1% in August

Detached new homes sales in Western Australia surged 15.1 per cent in August, spurred by a fresh wave of first time buyers, a new survey shows.

The Housing Industry Association today said following a flat mid-2009, new home sales in some states roared back in August, ahead of a step-down in the federal government's new home boost.

"A late surge in sales to first home buyers ahead of the step-down in the new home boost, propelled new home sales by more than 11 per cent in August, the best monthly result for over three and a half years," HIA chief economist Harley Dale said.

"The boost to new home construction from the tripling of the First Home Owner Grant for new dwellings will be apparent throughout the second half of 2009 and well into 2010."

New home sales in Australia increased by 11.8 per cent while the number of apartments sold rose by 7.5 per cent.

Sales in Victoria jumped 21.8 per cent in August while in Queensland it increased by 20.9 per cent. However in New South Wales sales fell by 11.3 per cent and 2.5 per cent in South Australia.

"The stimulus to first home buyers is clearly still exerting a positive impact on new home demand. At the same time there is moderate evidence of a lift in trade-up buyer activity in the new home market, but it is difficult to say the same for investors," Mr Dale said.

"It remains the case that we need to see further evidence of a broad-based recovery in private new home demand to compliment the activity that will be generated in 2010 by Federal programs such as the Social Housing Initiative and the National Rental Affordability Scheme."

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