Australia’s new home sales rise

Sydney: New home sales in Australia rose for a second consecutive month in June, an association said Monday.

The Housing Industry Association (HIA) New Home Sales report showed a 2.8 per cent rise in June, reported Xinhua.

The report found that national detached house sales increased by 0.7 per cent in June following a decline of 2.0 per cent in May.

However, multi-unit sales in June jumped 15.7 per cent.

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 per cent 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.