Australia sees new homes sales rise

Sales of new homes in Australia have risen again, new research has shown.

Figures from the Housing Industry Association (HIA) revealed that the number of new homes being bought in April jumped 0.5 per cent on March, with detached homes up 1.1 per cent.

This is the latest in a series of increases in such sales that has seen the number being bought increasing 22 per cent since it hit a floor in December last year.

Commenting on the situation, HIA chief economist Dr Harley Dale said: "The leading indicators point to housing as an emerging bright spot in the economy."

The HIA said the introduction of the AUD21,000 first home boost in the last budget - a measure aimed at helping first-time buyers - was a major factor in bolstering the market.

Such a development could mean that the Australian property sector is set to improve, which may offer some good investment prospects.

Another positive factor could be the longer-term economic outlook.

In a speech in April this year, governor of the Reserve Bank of Australia Glenn Stevens said recent research had shown that consumers in the country remained as optimistic about the prospects for the economy five years hence as they had before the economic crisis.

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