Australia new home sales slip 4.5 pct in Sept-HIA

SYDNEY, Oct 29 - Sales of new homes in Australia slipped in September, unwinding some of August's steep rise, an industry survey showed on Thursday.

The Housing Industry Association said sales dropped 4.5 percent in September, after a 11.4 percent increase the previous month. Sales of detached houses fell 4.3 percent while the volatile apartment market took a 6.5 percent drop.

Sales had been boosted in August by a rush to secure first- home buyer grants from the government.

"But the stimulus to new-home sales from the First Home Owner Boost is now on the wane," said HIA chief economist Harley Dale.

"The current level of new home sales points to a shallow recovery in residential building which will lag the underlying requirement for new dwellings," he added.

The Reserve Bank of Australia has warned that sluggishness in residential building could stoke home prices, one reason it chose to raise interest rates this month.

Separate industry figures out on Thursday showed house prices were now growing briskly after softness early in the year.

Australian Property Monitors' measure of median house prices rose 3.7 percent in the third quarter, while prices for apartments climbed 3.4 percent.

So far in 2009, home prices were up 7.1 percent across the country, to surpass their previous peaks.