New home sales posted healthy growth at the end of 2013, to reach a two and a half year high.

In the latest Housing Industry Association New Home Sales report, a survey of Australia’s largest volume builders,  new home sales posted an increase of 7.5% n November last year; the fastest monthly growth rate since January 2010.

The figures could be a good news for residential construction activity in 2014

Both new home sales and private sector building approvals increased strongly over the three months to November last year, with detached housing growing by around 4%,” said HIA Chief Economist Harley Dale.

“For new home sales the first ‘milestone’ to look out for will be sales once again reaching the volumes experienced in the first half of 2011.”

The 7.5% increase in total seasonally adjusted new home sales was driven by a 30.5% jump in multi-units and a 3.6% lift in detached house sales.

In November, detached house sales increased by 19.1% in South Australia, 8.1%in New South Wales and 16% in Queensland. They fell in Victoria (-2.3%) and Western Australia (-5%).

The largest increase over the three months to November 2013 was in South Australia (+26.8%), followed by Queensland (+8.7%).

Australians are expected to ramp up their investment in property in 2014.

A recent survey from finance company Homeloans revealed one-third of respondents intend to buy an investment property in the next 12 months, and a further 34% said it was on their New Year’s resolution list.

“A combination of low rates, the housing market showing signs of life in various cities, and the stockmarket’s volatility means people are being attracted to buying residential property as an investment,” said Homeloans Executive Head of Marketing Will Keall.

The survey showed property trumped shares as the favoured investment in the coming year, with bricks and mortar viewed as less volatile, and more likely to offer capital gains and rental returns.

Other findings from the Homeloans Home Buyer Barometer include:

• Almost one quarter of respondents purchased their first investment property when they were aged 18 – 29

• 61% prefer an investment property in a capital city

• 37% prefer an investment property in a regional city

• Over 50% purchased a detached house as their first investment property

• Existing properties were more popular than new builds or off the plan properties (76.1%)

• One sixth prefer a property close to where they live (for easy access)

• Over 60% of investors use a property manager to manage their property

• Those who have invested in property have an average of 1.6 properties