11 Jan 2014

New home sales rise 7.5% in Australia

6:12 am on 11 January 2014

Sales of new houses in Australia in November were at their highest in 2½ years.

New home sales grew by 7.5% in November, according to figures released by the Housing Industry Association on Friday.

More than 7000 new dwellings sold during the month, a level not seen since May 2011. HIA said it was the fastest monthly growth rate since January 2010.

Association chief economist Harley Dale said new home sales had been gradually improving since late 2012, which was a good sign for residential construction next year.

"Both new home sales and private sector building approvals increased strongly over the three months to November last year," he said.

AAP reports there have been other positive signs for the sector recently, with Australian Bureau of Statistics figures on Thursday showing a jump of more than 22% in building approvals in the 12 months to November.

The HIA figures showed a jump of 30.5% in sales of multi-unit dwellings while sales of detached houses rose 3.6%.

Detached house sales rose 19.1% in South Australia, 8.1% in New South Wales and 16% in Queensland during the month.

But AAP reports that was offset by a 2.3% fall in sales in Victoria and 5% in Western Australia.