A survey by industry group Housing Industry Australia (HIA) shows strong new home sales growth in March 2015 has taken sales volumes to their highest level since early 2010.

Diwa Hopkins, an economist with HIA, says the New Home Sales Report shows the residential construction sector continues to be a bright spot in the broader domestic economy.

“Following Monday’s positive update to ABS residential building approvals, today’s results show total seasonally adjusted new home sales increased by 4.4 per cent in the month of March.”

The March result for total new home sales consists of an 11.3 per cent rise in multi-unit sales and a 2.6 per cent rise in detached house 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.”

In March 2015 private detached house sales increased by 5.9 per cent in Victoria, 4.2 per cent in New South Wales and 4.2 per cent in Western Australia.

The HIA says yesterday’s interest rate cut is also a welcome boost for the industry.

“Lower lending rates will provide added support to residential construction activity, which is emerging as a key area of growth mitigating the effects of the downturn in mining investment and construction.”

Thank you to HIA and Australian Property Investor for this update.