Australia New Home Sales Fall 4.5% In Sep Vs Aug - HIA

SYDNEY -- Australian new home sales fell by 4.5% in September from August, according to data from the Housing Industry Association released Thursday.

The slide was linked to a partial withdrawal of government grants for new home buyers.

"We saw a late burst of sales from first home buyers in August ahead of the step-down in the first home buyers grant," said Harley Dale, chief economist at HIA.

This stimulus to new home sales is now on the wane, he added.

"With the first home segment weakening, further gains in new home sales will hinge on a return of upgrade buyers and investors. The current level of new home sales points to a shallow recovery in residential building which will lag the underlying requirement for new dwellings," Dale said.

The risk is growing "that costly delays in planning approvals and land shortages will combine to blunt the housing recovery, reversing the recent gains in housing affordability,