The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
UPCOMING EVENT - INDUSTRIAL AND LOGISTICS SUMMIT 16 OCTOBER, SYDNEY
INDUSTRIAL AND LOGISTICS SUMMIT - TICKETS NOW ON SALE
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
ResidentialMon 30 Jul 18

New Home Sales Increased for the First Time in 2018

8feb2e50-b2d3-43af-924a-aff935b97b6d

New home sales picked up 2 per cent for the month of June ending an underwhelming year for the sector on a positive note.

New home sales throughout the 17-18 financial year were 5.3 per cent lower than the previous financial year, according to the Housing Industry Association.

The welcomed 2 per cent rise marks the first increase for the year.

The June uptick comes after a slow first half to 2018, with sales for new homes 2.9 per cent lower than in the last six months of 2017.

The APRA-led crackdown on lending continues to impact related property sectors. Just this month, building market analyst and forecaster BIS Oxford Economics revealed it expects a 23 per cent drop in residential building starts in the next two years, primarily thanks to falling investor demand.

BIS forecast the fall in building activity might be the sharpest decline since the GFC, with dwelling commencements to drop around 170,000 by the end of the 2019-20 financial year.

Related: Value of Apartment Construction Work Set to Fall 16% in 2019


HIA principal economist Tim Reardon says the fall of sales over the financial year reflects current housing market fundamentals.

“The availability of credit has tightened over the past 12 months with banks responding to the decline in house prices and the Banking Royal Commission,” Reardon said.

Even after this slow-down, overall building activity remains elevated when compared with building levels over the past decade.

--HIA Principal Economist Tim Reardon.

In good news, new home sales increased in all states but Victoria, experiencing a decline of 0.4 per cent in June.

Reardon notes the decline in sales for the garden state is well overdue.

"Activity in the Victorian market has reached record levels over recent years and has remained elevated well above historical trends and well in excess of growth in other states.”

Sales in NSW increased by 8.3 per cent for the month of June. However NSW sales were 13.3 per cent lower in 2017-18 than the previous financial year.

Queensland saw new home sales rise 2.7 per cent. WA picked up 1.5 per cent and SA experienced a modest 0.2 per cent increase.

ResidentialAustraliaConstructionReal EstateConstructionSector
ADVERTISEMENT
Planning

State Goes Public with Plans for 10,000 Victorian Homes

Lindsay Saunders
Exclusive

Dark Horse: Self Storage Sector’s Biggest Players

Shravanth Reddy
Morris Property Group London Circuit concept HERO
Planning

Site Consolidation Bid Latest Step for ACT Office Plan

Leon Della Bosca
The developer has one final planning hurdle before construction can begin on its long-awaited commercial project…
LATEST
Planning

State Goes Public with Plans for 10,000 Victorian Homes

Lindsay Saunders
2 Min
Exclusive

Dark Horse: Self Storage Sector’s Biggest Players

Shravanth Reddy
3 Min
Morris Property Group London Circuit concept HERO
Planning

Site Consolidation Bid Latest Step for ACT Office Plan

Leon Della Bosca
3 Min
Life Sciences

NSW Healthcare Asset Portfolio Comes to Market

Lindsay Saunders
4 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/new-home-sales-have-increased-for-the-first-time-in-2018-
SHARE
14
print
Print
TOP STORIES
Exclusive

Precinct Proposals Bloom as Brisbane Middle-Ring Sheds its Past

Phil Bartsch
8 Min
Exclusive

Newest Land Lease Player Plots Sector Shake-Up

Taryn Paris
5 Min
Waterloo Affordable Mirvac hero
Exclusive

Affordable Housing Rules Tighten as Proposal Deluge Continues

Clare Burnett
5 Min
Exclusive

Beyond the Aerotropolis: How Airports are Turning into Cities

Taryn Paris
6 Min
Exclusive

Inside the Strategy Behind Australia’s Largest Direct Real Estate Deal

Phil Bartsch
5 Min
View All >