Resicom – Holiday Investment – 04-21 – LB

Australian Property Bouncing Back

Australian residential property sales have bounced back following a two-year low in October 2016.

The latest report form the Housing Industry Association has revealed that annual sales were up 6.1 per cent in November. Due to October’s especially low figures, sales during the quarter fell by 0.7 per cent, however this figure was just 0.2 per cent below the same period of 2015.

Home and overseas property investors were found to favour multi-units, with sales of the property type up 9.3 per cent. Four out of five mainland states saw growth in the sales of the aforementioned buildings during November 2016, with Queensland leading the way at 17.9 per cent. Victoria and Western Australia also saw a rise in the sale of multi-units at 4.7 per cent and 4 per cent respectively. New South Wales was the exception, with a decline of 5.9 per cent. New detached house sales were also up 5.2 per cent.

HIA chief economist Harley Dale said: ‘Following a dip to a two year low last October, the November bounce in new home sales is a reminder that the national new home construction sector remains in strong shape. The sector may have just passed its peak, but the short term outlook is a healthy one, a conclusion supported by other leading indicators such as the ABS measures of building approvals and housing finance.’

He continued: ‘A healthy outlook for new home construction in the first half of 2017 is good news for the Australian economy, because of the huge impact that new home construction has on broader economic activity. Without the boost from housing over the last five years the domestic economy would have at some point slipped into recession. You wouldn’t want to be seeing signals of an imminent and sharp slowdown in national new home building activity, and we’re not. Looking further out, the declines in construction activity will inevitably become chunkier.’

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