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{{propApi.successMessage}} {{region}} Change locationNew home sales brought forward to avoid NSW regulatory changes
New home sales brought forward to avoid NSW regulatory changes
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The HIA New Home Sales report is a monthly survey of the largest volume home builders in the five largest states and is a leading indicator of future detached home construction.
“The NSW Government has introduced a range of new regulatory costs that apply to homes for contracts signed after 30 September 2023. This has seen home buyers across NSW draw forward their purchasing decisions and sign new building contracts before these additional costs are imposed,” added Mr Croft.
“The strong sales in September are an aberration and it is expected that sales of new homes in NSW will fall away over the next few months.
“Increasing the supply of homes will require governments to help lower the cost of building, not add additional taxes and regulations. As governments make new homes more expensive, fewer new homes will be built.
“Beyond this aberration in NSW, sales of new homes weakened in Victoria, Queensland and South Australia to levels well below those observed this time the previous year.
“Sales of new homes in Western Australia remain solid, rising a further 3.2 per cent in September. Sales in the three months to September 2023 in Western Australia were 23.3 per cent higher than at the same time the previous year.
“Sales of new homes in the three months to September, despite the extraordinary spike in NSW in September, were 18.0 per cent lower than at the same time the previous year. It is anticipated that sales will continue to weaken for at least the rest of this year.
“Meeting the appropriate levels of new housing for Australia’s current and future population will require changes to the other policies that inflate construction costs. These are not only interest rates, but also tax settings, land release and planning reforms, and macro-prudential rules that squeeze out owner-occupiers and investors alike,” concluded Mr Croft.
New home sales across Australia increased by 6.9 per cent in September 2023 compared to the previous month. For the three months to September 2023 new home sales nationally remain 18.0 per cent lower than at the same time the previous year with declines in Queensland (-36.6 per cent), Victoria (-25.3 per cent), New South Wales (-22.2 per cent), and South Australia (-12.4 per cent). Western Australia saw a 23.3 per cent increase in sales in the three months to September 2023 compared to the same quarter in the previous year.
Private New House Sales - New South Wales (Seasonally Adjusted)
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