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New home sales rise in SA

South Australia has defied a national downturn in new house sales during the month of May.

Jun 29, 2016, updated Jun 29, 2016
 Photo: Nat Rogers/InDaily

Photo: Nat Rogers/InDaily

Total new homes sales across Australia fell 4.4 per cent in May, following a drop of 4.7 per cent in April, the Housing Industry Association’s data shows.

Detached house sales slipped 6.7 per cent, but multi-unit sales jumped 4.7 per cent in the month.

In South Australia, however, detached house sales were up 3.8 per cent. The only other mainland state to record a rise was Western Australia, at 5.4 per cent, with NSW and Queensland posting the sharpest monthly fall in detached house sales, dropping 11.5 per cent and 11 per cent, respectively.

The HIA said the national decline should be just a cyclical downturn with signs of a possible rebound when the home-building boom ebbs.

“There is nothing alarming about a reversal in the trend for new home sales,” HIA chief economist Harley Dale said in a statement today.

He forecast the current home-building boom would wane in 2016/17 and 2017/18. After that, he expects more completed homes to come onto the market again, with an accompanying lift in sales.

“There is a cyclical downturn ahead for new residential construction activity, as new home sales signal, but the early pull-back will be mild by historical standards,” Dale added.

-AAP

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