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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.
“This rise arose likely as a result of the rate cut in February 2025, the first one in over four years,” added Mr Tapang.
“New home sales have improved on the previous month’s decline, due to the effects of inclement weather and Cyclone Alfred which adversely impacted home buying activity in some regions.
“The other factors supporting new home buying activity include low levels of unemployment, recovering real wages and elevated housing demand from ongoing population growth.
“New home sales data have signalled that home building may be past its trough, confirming our expectations of a pick-up in activity in 2025.
“This increase will be modest nationally and inconsistent across the regions, with states such as Queensland, Western Australia and South Australia being key growth drivers.
“Sales have also improved in New South Wales at the start of this year, although this is coming off anaemically low levels in the last two years.
“Victoria had a poor start to 2025, recording consecutive months of declining sales. This left sales in the last three months to April 2025 down by 17.7 per cent compared to the same time in the previous year.
“With another rate cut having been delivered in May and expectations of further cuts on the horizon, it would not be surprising to see increases in new home sales in the months ahead,” concluded Mr Tapang.
New home sales in the three months to April 2025 rose by 23.7 per cent in Western Australia compared to the previous quarterly period. This was followed by Queensland (+8.2 per cent) and New South Wales (+2.2 per cent). Over that same period, South Australia recorded a 13.0 per cent decline in sales, followed by Victoria, down by 1.2 per cent.
Housing Industry Association (HIA) Industry Outlook Breakfast in Newcastle and Gosford have highlighted the critical role of infrastructure, planning reform and industry support in addressing housing supply challenges across the Hunter and Central Coast regions.
The Housing Industry Association (HIA) is calling on all political parties contesting the November State election to make regional housing a priority, placing regional communities and their growing populations front and centre of their pre-election policy commitments.
“HIA welcomes the initiatives to support new housing announced by the Treasurer as part of today’s NSW State Budget,” said Brad Armitage HIA NSW Executive Director.
On 1 July 2026, builders will receive a 9% increase to eligibility and job profile limits for building indemnity insurance. These changes are designed to keep up with rising construction costs and are a welcome change for the industry. This is one update you don't want to overlook - keep reading to find out if you are eligible, or what you can do to opt-out.