Oz detached sales leap

Sales of new properties in Australia rose 8.3 per cent in January amid the best home affordability conditions in the country for five years, according to the latest survey from the Housing Industry Association...

Detached property sales increased the most, a jump of 9.8 per cent in January and were up by three per cent for the three months leading to January.

The strong sales data suggests that efforts by the Australian Government to stimulate the real estate sector are working. This has included interest rate cuts, assistance for new home buyers and paying some dividends.

'The best home affordability conditions in five years and the boost to the first home owners grant propelled the sale of new detached houses,' said Harley Dale, the Chief Economist of the Housing Industry Association, the country's largest building industry association.

Signs of strength in the real estate sector vary across the country, the data shows. Detached new home sales rose by 24.2 per cent in South Australia and were up by 19.3 per cent in Victoria, 10.9 per cent in Queensland but just 0.9 per cent in Western Australia. And in New South Wales sales fell by 5.8 per cent.

And although the figures may be good news for detached house builders overall the construction industry in Australia is not doing well. The latest statistics show that building activity is at an all time low.

A sharp decline in credit is hitting the commercial property and residential apartment sectors.

'There is no let up for struggling construction firms as the relentless pressures of tight credit conditions and low market confidence continues to hit demand for building projects,' said Tony Pensabene, Australian Industry Group Associate Director, economics and research.

'This is evident in the on-going deterioration in activity across all major construction sectors as firms face intensifying competition for contracts and a further narrowing of business opportunities,' he added.

Source: www.propertywire.com