New home demand in Australia 'on the up'

The demand for new homes in Australia is clearly rising, an industry expert has said.

Harley Dale, chief economist at the Housing Industry Association, commented that the body's latest report indicated through a rise in the value of land that the property market situation is healthy.

The weighted cost of land increased by 7.4 per cent from AUD160,000 (GBP79,000) in December to AUD172,490 in March, the report noted.

Mr Dale commented: "Very low variable mortgage rates, the First Home Owner’s Grant boost and attractive deals from volume builders have generated increased new home demand."

Those considering buying in the country may add such remarks to their considerations, which could also include the recent statements made by the board of the Reserve Bank of Australia about the state of the property market.

In the minutes of the monthly meeting observed that house prices have been rising, loan approvals are "strong" and there has been "solid growth" in housing credit.

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