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{{propApi.successMessage}} {{region}} Change locationSales of new homes unchanged in February
Sales of new homes unchanged in February
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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 RBA delivered its first rate cut in four years on the 19th of February. It may take a few more months to see the effects of this rate cut on the market,” added Mr Tapang.
“A pick-up in sales at the start of 2025 has been consistent with the stable economic conditions arising.
“Australia’s economy continues to grow, while unemployment remains very low, inflation is easing, and wages are growing in real terms.
“While Australia’s population growth is moderating, it is doing so off very high levels. This strong population growth will only ensure underlying demand for housing remains solid.
“The strong economic and household factors will offset the challenges of the higher cost of materials, labour, land and taxes on new homes.
“It will be state and local factors that will determine the pick-up in home building activity across the different regions.
“Those that are able to help lower the cost of and increase the supply of shovel-ready land will see a stronger increase in activity.
“On the other hand, in capital cities and regions where the tax and regulatory imposts on land and new home building is high, the volume of new home starts will remain constrained.
“This has already been evident in the contrast between Queensland, South Australia and Western Australia where sales have been picking up, while New South Wales and Victoria remain weak,” concluded Mr Tapang.
“In the three months to February 2025, new home sales increased in New South Wales by 55.4 per cent compared to the same period in the previous year, off a very low base. This was followed by South Australia (+18.9 per cent) and Queensland (+14.6 per cent). Victoria recorded a 4.3 per cent decrease over the same period, while Western Australia saw a 20.3 per cent decline, off a high base last year.
Download our latest HIA New Home Sales Report
Private New House Sales - Australia (seasonally adjusted)
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