07/01/2009 - 10:08

WA new home sales up 8%

07/01/2009 - 10:08

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New home sales in Western Australia have bucked the national trend, rising 8 per cent in November, a housing industry survey has found.

New home sales in Western Australia have bucked the national trend, rising 8 per cent in November, a housing industry survey has found.

The Housing Industry Association survey of the largest 100 residential builder across Australia found new home sales declined by 1.1 per cent nationally, compared to a 3.1 per cent increase in October.

HIA chief executive Chris Lamont said the national result is disappointing, given that the increased first home owners grant and the decline in interest rates was expected to further boost activity.

The Reserve Bank of Australia slashed interest rates from 7.25 per cent to 4.25 per cent over a four month period late last year, while the federal government introduced a $10.4 billion stimulus package to help ward off the economic slowdown.

In WA, detached new home sale increased by 7.9 per cent while New South Wales rose 3.8 per cent, South Australia climbed 1.8 per cent and Victoria crept up 0.9 per cent.

"The overall profile for new home sales remains weak, although there is early evidence of an improvement in Victoria and a stabilisation in Western Australia," Mr Lamont said.

Nationally, sales of detached houses fell 0.4 per cent after a 5.2 per cent increase in the previous month.

Queensland was the main contributor with sales falling 10.1 per cent.

Meantime sales of multi-units fell by 5.3 per cent in October following a fall of 8.6 per cent in October.

"A lack of available credit and general economic uncertainty saw investors sitting on the sidelines in the second half of 2008 and this is now showing up in very weak updates for the multi-unit market," Mr Lamont said.

"Measures to stimulate investment in the multi-unit sector should include a doubling of the depreciation allowance and extending eligibility of the National Rental Affordability Scheme to private investors.

"Ensuring availability of credit for new development is also vital in the current environment."

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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