Australian new homes sales rose 11% in August from July, the best outcome in over three and a half years, the Housing Industry Association, an umbrella group for home builders, said.
The sharp rise follows a modest 0.1% increase in July from June. It comes amid a late surge in sales to first-time home buyers as generous government grants are due to be pared back, it said in a statement.
Detached house sales rose by 11.8% on-month, following a 0.3% rise in July. The number of apartments sold rose by 7.5%.
"The stimulus to first home buyers is clearly still exerting a positive impact on new home demand. At the same time there is moderate evidence of a lift in trade-up buyer activity in the new home market but it is difficult to say the same for investors," HIA chief economist Harley Dale said.