Significantly fewer new apartments were sold in Australia in July, contributing to a slide in new home sales for the month.
New apartment sales fell by 15.7 per cent in July, weighing on overall new home sales that fell by 3.7 per cent, Housing Industry Association figures released on Tuesday show.
Sales of new detached homes dropped by a more modest 0.4 per cent.
The HIA report, a survey of Australia’s largest home builders, shows Victoria was the only state in which July sales grew.
Detached home sales were up 9.8 per cent in Victoria, compared with declines in South Australia (16.2 per cent), Queensland (16.1 per cent), Western Australia (9.1 per cent) and New South Wales (5.2 per cent).
“Victoria remains the jewel in the crown of Australian home building activity at the moment,” the report said.
“With a further 9.8 per cent growth on what is already a very high base, it has extended its lead as the most active detached home building state.”
The HIA said the fall in sales in WA was linked with the state government’s First Home Buyers grant winding up at the end of June.
Total Australian new home sales in the first seven months of 2017 are down 4.6 per cent compared to the same period in 2016.
The results are in line with the HIA’s expectation that sales will continue to slow for a number of years after peaking in mid-2015.