The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
URBAN LEADER AWARDS ARE BACK! START YOUR NOMINATIONS
URBAN LEADER AWARDS ARE BACK! START YOUR NOMINATIONS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
12
print
Print
FinanceFri 29 Jun 18

Credit Curbs See New Home Sales Fall Again

6d8d69c0-90ba-4ab6-ab84-4cc4707e026f

The most recent downturn in Australia’s housing market has been precipitated by tightening credit conditions, with the latest new home sales numbers revealing the fifth consecutive monthly decline.

New house sales continued to slide in May, with New South Wales experiencing the largest monthly reduction, Housing Industry Association figures show.

Last month’s decline has continued the downward trend in new house sales in the first half of 2018.

“New house sales declined by 4.4 per cent in May and are now 12.8 per cent lower than the most recent cyclical high that occurred in December last year,” HIA principal economist Tim Reardon said.

The HIA New Home Sales report revealed that the reduction in May was synchronised across all states surveyed, with sales declining in Melbourne for the first time in this cycle.

“The new home market in Melbourne has been exceptionally strong over a number of years and we are now seeing a very modest slow-down in activity.

“While market conditions are slowing in Melbourne, building activity will continue to be solid given the very large volume of work still in the pipeline.”

In May, new house sales in New South Wales fell by 6.8 per cent, 4.6 per cent in Victoria, 5.0 per cent in Queensland, 0.2 per cent in South Australia and 2.4 per cent in Western Australia.

“Access to finance has become the barrier to ongoing growth in home sales,” Reardon said.

“The availability of credit has tightened over the past 12 months with banks responding to the decline in house prices and the Banking Royal Commission by limiting lending to new home buyers.”

Related: Sydney and Melbourne Drive Housing Price Fall


Credit curbs will ease over 2018

In some positive news, the HIA said that the impact of tighter constraints will ease over the year.

The report said that detached house starts are forecast to rise slightly this year following the 2.8 per cent decline in 2017.

“Beyond that temporary lift, we expect the downturn in detached house building to properly take root in 2019 – and house sales appear to be providing a very early indication of this occurring,” Reardon said.

OtherAustraliaFinanceReal EstateTrend
ADVERTISEMENT
TOP STORIES
Scape PBSA Kingsford EDM
Exclusive

It Takes More Than a Room: PBSA Evolves to Meet Student Demands

Clare Burnett
7 Min
Exclusive

Soheil Abedian: What’s Driven the Man Who’s Transformed a City

Phil Bartsch
7 Min
Exclusive

Robots Not a Miracle Cure for Housing Productivity Crisis

Vanessa Croll
6 Min
Exclusive

Where 600 Wealthy Families Are Putting Their Millions

Taryn Paris
6 Min
Brique Projects EDM
Exclusive

Brique Thrives in Cauldron of SE Queensland Development

Clare Burnett
7 Min
View All >
Scape PBSA Kingsford EDM
Exclusive

It Takes More Than a Room: PBSA Evolves to Meet Student Demands

Clare Burnett
Salvos Coliving EDM
Residential

Investa, Salvos Reveal Co-Living Plan for Sydney CBD

Clare Burnett
Infrastructure

Invest Gold Coast Launches Hunt for $500m Arena Partner

Renee McKeown AND Taryn Paris
Gold Coast Mayor Tom Tate is calling for global investors to help deliver the Gold Coast Arena ahead of the 2032 Games..…
LATEST
Scape PBSA Kingsford EDM
Exclusive

It Takes More Than a Room: PBSA Evolves to Meet Student Demands

Clare Burnett
7 Min
Salvos Coliving EDM
Residential

Investa, Salvos Reveal Co-Living Plan for Sydney CBD

Clare Burnett
2 Min
Infrastructure

Invest Gold Coast Launches Hunt for $500m Arena Partner

Renee McKeown AND Taryn Paris
3 Min
Industrial

ISPT Files Plans for Dandenong Mega-Logistics Project

2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/credit-curbs-see-new-home-sales-fall-again