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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).
“The Victorian government’s approach to publishing housing targets for each council to achieve is a positive step but will not by itself improve housing supply or affordability” stated HIA Executive Director, Keith Ryan.
“Harnessing artificial intelligence to drive a once in a generation overhaul of planning systems across the country could be the circuit breaker Australia needs to deliver 1.2 million homes over next 5 years” said Sam Heckel HIA Executive Director, Planning & Environment.
The Housing Industry Association (HIA) has welcomed the latest ABS building approvals data for Tasmania, which shows a strong monthly increase in detached house approvals.
The Housing Industry Association (HIA) is pleased to announce Structerre Consulting as the headline partner of the 2025 HIA Western Australian Housing and Kitchen and Bathroom Awards.