It’s become quite evident that new homes are what Australia needs to keep the economy ticking over. This is especially true in the western-most state, where we find the decline of mining activity has changed the economic profile, while population continues to grow.
This is why it’s particularly good to hear that new homes sales have risen consecutively for the first four months of the year. The Housing Industry Association (HIA) reports that in every month up to and including April, sales of freshly constructed homes have increased. However, that’s not to say that this success is evenly spread. In the fourth month of the year, only New South Wales, Victoria and Western Australia were in positive figures, while the other states and territories slipped back.
Although, with these three states doing the hard yards, the average across the country was an increase of 0.6 per cent, which is impressive given the strong month that was had in March. Of course it can’t be expected that sales continually increase without having some months of lower activity – that would be a very unsustainable market.
The HIA has revealed that new dwelling approvals slipped in April, dropping 4.4 per cent. This natural decline in activity should not be feared, as it can be taken as an indication of a healthy market, with ups and downs. Economic conditions that only promote upward movement, without allowing for a natural cycle can lead to heady heights, from which there is only one way down – a lesson the entire country has learned from the past.
However, there was some good news in the HIA report on housing approvals, and it’s that green-lit freestanding homes have actually increased by 4.7 per cent. This is great news for anyone looking to build a luxury home in Perth, as it shows that the market for substantial housing is still active and thriving.