New home sales in Australia rose for a second consecutive month in June, due to a surge in multi- units dwelling sales, the Housing Industry Association (HIA) said on Monday.
The HIA New Home Sales report showed a 2.8 percent rise in June.
The report found that national detached house sales increased by 0.7 percent in June following a decline of 2.0 percent in May.
However, multi-unit sales in June jumped 15.7 percent.
HIA chief economist Harley Dale said it was encouraging to see a second month of growth in new home sales across Australia.
“It is, however, a stark reminder of how much catching up is left in the multi-unit sector when a lift of this magnitude still leaves sales volumes 36 percent below their 10-year average,” Dale said in a statement.
He said lower interest rates would assist new housing in the financial year of 2013, but the gap between the cash rate and variable mortgage rates would reduce their positive impact.
“Investment and reform from governments is the key ingredient to lifting the new housing sector substantially above the recessionary levels of 2012,” Dale said.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.