Multi-unit sales increase in popularity

Multiunit-dwelling-sales-are-showing-strength_157_71412_0_14099900_300A positive start to new home sales highlights favourable conditions for the Australian property market as it cycles into the second quarter of 2014.

Private sector new home sales exhibited a monthly increase of 2.9 per cent in April, according to a May 29 release from the Housing Industry Association (HIA).

This may present good opportunities for Sydney property buyers, be they homeowners or investors. The month-on-month gain is the fourth consecutive increase, which certainly shines a positive spotlight on the wider property industry.

That’s not to mention the broader economic benefits of a strong construction sector – a point that the HIA has alluded to previously.

“The recovery in new home building is a key plank in Australia’s economic growth, as evidenced by the March quarter construction work done figures released yesterday,” explained Harley Dale, chief economist for the HIA.

Private sector new home sales increased 6 per cent in the three months to April, showing clear growth in this area of the property market.

In Sydney, there will be a range of buyers seeking new properties, whether they’re young professionals or retirees wanting a structurally sound property of a modern design.

When it comes to the type of dwelling, it’s obvious that multi-unit sales are a hit across the country.

Inner-city Sydney was one of three areas with the highest proportion of medium density approvals over 2012 and 2013, according to Bankwest’s 2014 Housing Density Report.

Multi-unit sales rose by 9.3 per cent between March and April across the country, indicating the popularity of this kind of living.

“Momentum in new home building activity will carry over into the June quarter, while the trajectory evident in coming months for leading indicators such as new home sales and building approvals will provide crucial insight to the growth prospects for the broader economy in 2014-15,” explained Dr Dale.

“A healthy April for new home sales provides a promising start to the June 2014 quarter.”

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