New homes sales in Australia rose 8.3% in January, the latest survey by the Housing Industry Association shows.

'The best home affordability conditions in five years and the boost to the first home owners grant propelled the sale of new detached houses,' said Harley Dale, the chief economist of the Housing Industry Association, the country’s largest building industry association.

Detached home sales increased by 9.8 per cent in the month and were up by 3 per cent for the three months to January.

The Australian