The latest HIA - JELD-WEN New Home Sales Report, a survey of Australia’s major residential builders, showed that the number of new homes sold eased by 0.2 per cent in November 2010 with detached house sales declining by 1.1 per cent.
Sales of multi-units increased by 8.1 per cent last November.
Over the three months to November 2010 new home sales fell by two per cent to be 11 per cent lower when compared to the same three month period in 2009.
In the month of November 2010, detached new house sales increased by 6.2 per cent in New South Wales and by 1.5 per cent in Western Australia. Sales fell by 0.2 per cent in Victoria, 10.4 per cent in Queensland, and 0.8 per cent in South Australia.
Housing Industry Association chief economist Dr Harley Dale said that new home building conditions weakened considerably over the second half of 2010 and the November rate hikes added further salt to the wound.
“New home building activity looks set to decline across all states and territories in 2011,” Dale said.
“The risk of a sharp contraction in new home building in 2011 is exacerbated by the negative impact on households and small businesses of increases in borrowing costs and by the persistent lack of available credit for small and medium sized new home projects.”
“It would be a shot in the arm for confidence and activity in the residential sector to see the New Year kicked off by a re-engagement of housing policy reform by the Federal Government to address a range of supply side constraints including the credit squeeze.”
“Furthermore, given that new housing is one of the most heavily and inequitably taxed industries in Australia it is essential that the upcoming taxation summit delivers bold and effective policy reform.”
