STOCK MARKET BSE NSE

Australia's new home sales fall

Published: 28th August 2012 02:02 PM  |   Last Updated: 28th August 2012 02:02 PM   |  A+A-

By IANS

New home sales in Australia posted a weak result in July, giving up much of the strength gained in late 2011-12, according to a report released Tuesday by the Housing Industry Association (HIA).

The HIA new home sales report showed a decline of 5.6 percent in new home sales in July, following three consecutive months of rises, including an increase of 2.8 percent in June, reported Xinhua.

The detached housing sector fell 5.5 percent in July, following a rise of 0.7 percent in June, while there was a 6.4 percent drop in multi-unit market in the month.

HIA chief economist Harley Dale said new home building was still the weakest sector of the Australian economy, despite rate cuts from the Reserve Bank of Australia.

"Now is a good time to build a home - interest rates are lower, it's a very competitive market, and there is less pressure on skilled labour availability," he said.

"However, consistently weak consumer (and business) confidence is weighing very heavily on new housing investment, far more so than is the case for retail expenditure."

Dale said weakness in the new housing would continue into the 2013 financial year.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp