{{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location {{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change locationVictorians returning to new home market
Victorians returning to new home market
Member and guest login
Enter your email and password to access secured content, members only resources and discount prices.
Did you become a member online? If not, you will need to activate your account to login.
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
Forgotten password
Need some help?
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
If the email address you have entered is registered, you will receive an email with further instructions.
Become part of the HIA community
Enables quick and easy registration for future events or learning and grants access to expert advice and valuable resources.
Create a guest account
Enter your details below and create a login
Send me exclusive tips, early access to new launches, and special offers. I can change my mind at any time.
By clicking Get started now you agree to the terms and conditions and privacy policy.
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 month was the strongest for Victoria since April 2024, when buyers rushed to get ahead of the cost increases associated with changes to the National Construction Code,” added Mr Ryan.
“This makes May 2025 the second strongest month of sales in almost three years.
“Strong population growth, low unemployment and recovering household incomes had already seen new home buyers return to more affordable markets like Queensland, South Australia and Western Australia, while Victorians have been held back by higher land costs.
“Two interest rate cuts and the resolution of election uncertainty are now helping more Victorians over the line when it comes to deciding to build a new house.
“The performance over the last three months is the strongest indication yet of broadly improving detached home building conditions in Victoria this cycle.
“Victoria has seen pockets of strong activity in the knockdown-rebuild and custom build segments of the market. With borrowing costs falling and election uncertainty behind us, buyers should increasingly return to the volume segment of the market.
“Unfortunately, there is not yet evidence that the multi-unit segment of the market will also improve soon. Once again detached, and especially greenfield, housing will need to do most of the work to get Victorians into new homes.
“Even with further cuts to the cash rate and improving market confidence, the coming cycle is not forecast to be sufficient to meet government housing targets. Taxes and regulations imposed on the market by policymakers will constrain the peak of the next cycle.
“Foreign investors are forced to pay over $130,000 in stamp duty, land tax and foreign investment fees to build a typical new home in Victoria – almost $100,000 more than a local investor.
“Foreign capital is highly liquid. These punitive stamp duty and land tax surcharges have resulted in foreign investors exiting the market in favour of more open economies.
“Consequently, multi-unit construction volumes have halved since these surcharges started being introduced, meaning these imposts are also likely to be revenue negative.
“Foreign investors have been prohibited from buying existing housing in Australia since 1975. They only build new housing and don’t add to housing demand, as they don’t live in Australia.
“Stimulating housing demand through record inflows of overseas arrivals, while simultaneously penalising those who finance new housing supply, has been one of the worst policy own goals in recent history,” concluded Mr Ryan.
For more information please contact:
Security of payment act changes start 15 April 2026
Last year the Victorian government made changes to the Building and Construction Industry Security of Payment Act 2002 (SOP Act), with some of those changes to start from 15 April 2026.
New HIA report calls for action to unlock Tasmania's housing supply
Outdated subdivision and minimum lot size controls are preventing Tasmania from delivering the homes it needs, according to a new Housing Industry Association report.
Nothing brings satisfaction like a tradie career
“The knowledge that there will be good employment prospects at the completion of training, provides piece of mind for today’s up and coming tradies,” said HIA Executive Director Future Workforce, Mike Hermon.
Outdated lot size rules locking out thousands of new homes
New Housing Industry Association (HIA) analysis shows state and local governments are actively blocking housing supply while publicly committing to fix affordability.