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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 fall in sales in July 2025, from a near 33-month high, is likely due to the end of financial year sales,” added Mr Tapang.
“Despite the monthly decline, new home sales in the three months to July 2025 increased by 15.9 per cent, to its highest level since the September quarter 2022.
“New home sales have increased following the first two cuts to the cash rate.
“The rise in the price of established homes will also increasingly see households move to the new home building market.
“The fall in sales in July was driven by declines in New South Wales, Victoria and Queensland, while gains were recorded in South Australia and Western Australia.
“Over a three-month period to July 2025 all markets saw increases in new home sales. This points to volatility being the driver of this month’s decline.
“Demand for new homes is increasing on the back of ongoing population growth and low unemployment.
“This improvement in sales through the start of 2025 will not be sufficient to reach the goal of 1.2 million homes. More significant structural changes to the way in which new home building is taxed and regulated will also be necessary,” concluded Mr Tapang.
All states recorded increased new home sales in the three months to July 2025 compared to the previous quarterly period. This was led by Victoria (+23.4 per cent), followed by South Australia (+23.1 per cent), New South Wales (+18.8 per cent), Queensland (+13.3 per cent) and Western Australia (+2.6 per cent).
From today, every new home built in Tasmania must meet the full Livable Housing Design requirements. The Housing Industry Association says this adds thousands of dollars to the cost of building a home, at a time when Tasmanians can least afford it.
Changes to Western Australia's requirements for managing the risks of falls will commence on 1 October 2026, introducing new expectations for builders, contractors and workers undertaking tasks where there is a risk of falling.
As of today, 1 October 2026, all new building work in Tasmania, unless exempt, must comply with all requirements of Part H8 Livable Housing Design of NCC Volume Two.
“The ACT’s housing supply pipeline is weakening, with building approvals in the three months to August halving compared with a year earlier,” said HIA Executive Director ACT and Southern NSW, Geordan Murray.