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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 monthly rise in new home sales occurred prior to the cash rate cut in February, which should further boost market confidence,” added Mr Tapang.
“Sales have been increasing off a very low base, consistent with stable economic conditions. Unemployment remains at very low levels, while there remains an acute shortage of housing stock.
“The volume of new homes sold nationally in the three months to January 2025 were also 4.1 per cent higher compared to the same period in the previous year.
“Poor sales volumes in New South Wales and Victoria have obscured an improvement in Western Australia, Queensland and South Australia.
“This likely reflects the relative affordability of these markets, with the cost of a new detached house in Sydney and Melbourne prohibitively expensive for a larger number of households.
“The volume of detached house approvals in Australia has also picked up, with the 2024 calendar year seeing 6.8 per cent more houses approved for construction compared to 2023.
“The rise in new home sales and new detached house approvals in is consistent with expectations of an increase in the volume of homes commencing construction this year,” concluded Mr Tapang.
“New home sales in the three months to January 2025 increased by 70.5 per cent in New South Wales compared to the same time in the previous year, off a very low base. This was followed by South Australia (+22.3 per cent) and Queensland (+12.3 per cent). New home sales were virtually unchanged in Victoria (-0.5 per cent) over the same period, while Western Australia recorded a 26.1 per cent decline but only due to capacity constraints, particularly with labour.
Launched at HIA’s National Policy Congress today in Melbourne, the Housing Industry Association (HIA) and MiTek have joined forces to launch She Builds The Future – a program designed to inspire, educate and promote diversity in the residential building industry.
The Housing Industry Association (HIA) announced Mr Pino Monaco as the 2025 recipient of the prestigious Sir Phillip Lynch Award of Excellence.
“Lending for the purchase or construction of new homes remained flat in the first quarter of 2025, likely the result of election uncertainty. The data also reflected the situation prior to the effect of the RBA’s first interest rate cut,” stated HIA Senior Economist Tom Devitt.
“The Housing Industry Association (HIA) welcomes the extension of the HomeGrown Territory grants until September 2026, which will support more Territorians into their own home,” said Luis Espinoza, HIA’s Executive Director.