March Newsletter
Surge in new homes, plunge in apartments
Posted on Saturday, March 07 2009 at 8:30 AM
While sales of new detached homes surged by 9.8 per cent in January, pre-contract sales of apartments and home units continued to decline.
According to the Housing Industry Association’s (HIA) chief economist, Harley Dale, “Detached home sales increased by 9.8 per cent in the month and were up by three per cent for the three months to January.”
Dale says, “Pre-contract sales of apartments and home units declined for the fourth consecutive month, indicating a continued softness in rental investor activity.
“A better start to 2009 for new home sales is an encouraging result. But a sustained recovery in new home construction will rely on trade-up buyers and investors returning to the market, and the timely procurement of the planned 20,000 new public and community housing dwellings,” says Dale.
He adds, “The unlocking of many of the private dwelling projects caught up in the credit crunch will go a long way to ensuring a broad-based private sector housing recovery. A rapid start to the Federal Government’s public housing stimulus plan announced in early February is a vital cog in transitioning the industry to recovery,” says Dale.
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