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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.
“Changes to the National Construction Code (NCC) came into effect in Victoria and Queensland on the first of May. This is expected to add thousands of dollars to the cost of construction through, among other things, the Code’s new energy efficiency standards,” added Mr Reardon.
“To get ahead of these cost increases, home buyers rushed to sign the contract for the construction of their new home by the end of April.
“New South Wales experienced the same phenomenon last September when the state introduced its latest energy efficiency standards, adding significantly to the cost of a new home. This was followed by an equally large drop in sales in the subsequent months.
“As with New South Wales, a ‘shadow’ of demand for new homes is expected in Victoria and Queensland in May and June, reflecting the sales that were drawn forward into April.
“Additional regulatory costs, such as the NCC changes, are one of the causes of the acute shortage of housing. The changes are intended to achieve energy efficiency and accessibility outcomes, but they also force people out of homeownership and the rental market.
“The NCC changes are also inequitable as they impose a much higher cost of national carbon abatement goals onto those building a home than any other segment of the economy. These measures are inconsistent with a least cost, economy wide, approach to carbon abatement.
“Ongoing changes to building codes will continue inflating the costs of construction with the next phase of building regulations now open for public consultation.
“If ever there were a good time to stop inflating the cost of home building, this must be it.
“Lowering the cost of delivering new homes to market is essential to achieving the Australian government’s target of 1.2 million new homes over the next five years, and improving housing affordability across the country,” concluded Mr Reardon.
For the month of April, all the large states saw increases in new home sales compared to March 2024, led by Victoria (+34.9 per cent), and followed by New South Wales (+33.1 per cent), Queensland (+25.5 per cent), South Australia (+17.0 per cent), and Western Australia (+1.1 per cent).
Over the three months to April 2024, all of the large states are up compared to the same quarter last year, led by Queensland (+57.1 per cent), and followed by South Australia (+20.8 per cent), Victoria (+19.5 per cent), New South Wales (+15.8 per cent), and Western Australia (+12.5 per cent).
The WA Cost Plus Contract has been updated to improve clarity, accuracy and usability for builders. Changes include revised contract schedule items, updated document references and a new clause covering contract interpretation and document precedence.
HIA provided additional feedback regarding the SRG proposal papers for construction, falls and infringement offences.
The Housing Industry Association (HIA) makes the following submission to the Treasurer and the Department of Treasury to inform deliberations ahead of the 2026-27 South Australian Budget.
“The Housing Industry Association (HIA) welcomes the ambition of the Coalition’s Budget in Reply handed down tonight, including measures that support business investment, improve productivity and boost housing supply,” said HIA Managing Director Jocelyn Martin.