New Home Sales Drop Across Country, But Still Strong, HIA Says

Victorian new home sales dropped by 9 per cent in May, following months of increased sales resulting from the boosted first home buyer grants.

Overall Victoria’s new home sale market is still performing impressively, with detached home sales increasing by 16 per cent over the three months to May 2009, according to the Housing Industry Association’s survey of the state’s largest builders.

 “Along with other leading indicators, the figures point to a healthy new home building market in Victoria in 2009,” said HIA Victorian Executive Director Gil King.

“An existing new home affordability advantage, compared with Australia’s other large states, has been bolstered by the Victorian Government’s further stimulus to first home buyers entering the new housing market,” Mr King said.

From July 1 the combined Federal and Victorian first home buyer grants will be a massive $32,000 for new homes in metropolitan Melbourne, and $36,500 for new homes in regional Victoria.”

“We believe the more generous grants will result in ongoing activity in the first home buyer market, particularly between July 1 and September 30 when the combined grants are highest.”

The number of private sector detached house approvals increased by 7.3 per cent, the fifth consecutive rise.

Nationally, new home sales in May decreased by 5.7 per cent, but were still 15 per cent above its December low point.

For the month of May, detached new home sales decreased by 9.9 per cent in New South Wales and 13.5 per cent in Western Australia. Sales grew by 2 per cent in Queensland and by 3.6 per cent in South Australia.