New homes sales surge 6%: report

AAP

NEW homes sales surged up six per cent in April due to strong growth in Victoria, a Housing Industry Association (HIA) report shows.

Private sector detached house sales increased 6 per cent in April, while multi-unit sales rose 8 per cent following two soft months in February and March, the report found.

Over the three months to April 2010, new detached house sales were up 19 per cent in Victoria and 1 per cent in South Australia.

But they were down 6 per cent in NSW, 4 per cent in Queensland and 2 per cent in Western Australia.

Detached new home sales increased by 27.6 per cent in Victoria and 4.3 per cent in SA in April.

Meanwhile detached house sales fell 9.6 per cent in NSW, 4.5 per cent in Queensland, and 8.2 per cent in WA.

HIA chief economist Harley Dale said the new home sales report of Australia's major residential builders showed new home building in Victoria defied higher interest rates due to the state government's first home buyer top-up grant for new dwellings.