New home sales rose for a second straight month in May, led by strong growth in building activity in NSW and Queensland.
A survey of Australia's largest home builders by the Housing Industry Association shows new home sales increased by 1.1 per cent in May, following a rise of 0.8 per cent in April.
May's growth was helped by a 2.2 per cent increase in sales of new detached houses, while multi-unit sales were down 2.6 per cent.
Queensland recorded the best jump in detached home sales, soaring by 31 per cent, while in NSW sales were up 16.8 per cent.
But sales of new homes were down in South Australia (15.6 per cent), Victoria (14.7 per cent) and Western Australia (3.4 per cent).
"The results for May again demonstrate how stark the differences currently are across Australia's markets," HIA senior economist Shane Garrett said.
The figures for May support the HIA's forecast of a modest contraction in the construction of detached housing across the country over the next few years, and a much bigger reduction in the construction of multi-unit developments.
