Drop in new home sales in Queensland

Story by news.com.au

A LACK of readily available land and high infrastructure charges are being blamed for the fifth consecutive drop in new home sales in Queensland.

According to the Housing Industry Association, Queensland's new home sales dropped 5.1 per cent in June.

The figures add up to a 17.4 per cent decline in new home sales for the quarter.

While Queensland did not suffer the biggest drop in June  Victoria fell by 10 per cent and Western Australia by 5.2 per cent  it was the only state to be hit by so many consecutive drops in new home sales.

HIA economist Harley Dale said that, while new home sales fell nationally over the month, private multi-unit sales grew by 10.3 per cent in June 2010.

"Since the latter months of 2009, there have been tentative signs of a much-awaited recovery in multi-units,'' he said.

 

"We think it is going to continue to be a difficult year,'' Mr Dale said.

He is worried that  if things do not change in terms of land availability and infrastructure charges  housing affordability will reach `"ever more alarming low-points''.