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The HIA New Home Sales report – a monthly survey of the largest volume home builders in the five largest states – is a leading indicator of future detached home construction.
“New home sales increased by 3.9 per cent in March 2022 compared to the previous month. This leaves sales for the first three months of the year lower by 2.8 per cent compared to the previous quarter,” added Mr Devitt.
“Excluding the period associated with the HomeBuilder stimulus, this is the second strongest quarter since 2016.
“Despite a difficult start to the year, with staff absences associated with the Omicron outbreak and extended holiday leave, new home sales continue to sustain levels usually associated with government stimulus.
“Demand for new homes continues to be driven by a shortage of homes and an acutely tight rental market that has resulted in rapid house price and rental price growth.
“Tighter lending conditions have had minimal impact on the market to date. With rental vacancies at close to zero demand for new homes will continue and an increase in the cash rate is likely to be the turning point for a slowing in demand.” concluded Mr Devitt.
On a quarterly basis, sales in New South Wales increased in the three months to March 2022 to be 78.5 per cent higher than the equivalent quarter in 2019, before the pandemic.
This was followed by Queensland (+33.3 per cent), Victoria (+19.1 per cent) and Western Australia (+15.4 per cent). South Australia saw the only decline over the period, down by 4.6 per cent.
The region's finest in residential building and renovation will be recognised tomorrow night as the 2026 HIA ACT Southern NSW Housing, Kitchen & Bathroom Awards are held at Parliament House in Canberra.
The Housing Industry Association has welcomed the opening of community consultation on Ginninderra East, encouraging Canberrans to help shape the future suburb on former CSIRO land between Belconnen and Gungahlin.
With the current brick shortage creating challenges across WA’s residential building industry, some builders are exploring alternative construction methods to help keep projects moving.
The Housing Industry Association (HIA) welcomes the release of the Productivity Commission’s interim report, Unlocking business dynamism, that proposes reforms that has the potential to help small residential builders and trade contractors comply, restructure and recover.