New home sales continue to rise
The rate of new home sales hit its highest levels since 2010, with new house sales jumping 4.4 per cent in March and new apartment sales surging 11.3 per cent, according to a report released by the Housing Industry Association (HIA).
The report also notes that sales of new detached homes increased 2.6 per cent during the same period.
Around the same time as the HIA report was released, Australian Bureau of Statistics (ABS) data shows that building approvals hit a new record in March, as apartment numbers continued on an upward trajectory.
The ABS stated that apartment approvals have grown by 59.2 per cent over the twelve months to March.
Supported by record low interest rates, HIA economist, Diwa Hopkins said that growth is driven by multi-unit sales.
"The monthly rise in both the detached and multi-unit segments of the market is an encouraging result. However, the broader trend is that growth over the past year has been driven by multi-unit sales, while detached house sales have tracked sideways," Ms Hopkins told The Australian newspaper.
Ms Hopkins went on to say that lower lending rates - since the RBA's second rate cut for 2015 in May - will continue to support residential construction activity.
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