South Australia records rise in new real estate sales

New homes for sale in South Australia saw their third consecutive rise last November, with a 6.7 per cent increase from October.

The figures contributed to a 2.9 per cent jump in sales in the three months to November compared with the previous quarter.

The Housing Industry Association's (HIA) regional director, Robert Harding, hypothesised that this is based on a concerted state government effort to support the residential construction industry through fiscal policy. The improvement is also being attributed to the recent spate of interest rate cuts.

He said: "Against the backdrop of late 2012, when we had lower borrowing rates combining with a state incentive encouraging new home building through amendments particularly to first home buyer assistance, it is promising to see new home sales moving in the right direction."

The regional director added that it is generally accepted that the wellbeing of the real estate construction sector aids in the strength of the general Australian economy.

Other states to record growth in November were Victoria and New South Wales with 15.6 and 15.8 per cent rises, respectively.

Western Australia and Queensland saw their new home sales shrink with the sunshine state declining by 0.1 per cent and 6.8 per cent for the western state.