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{{propApi.successMessage}} {{region}} Change locationVictoria defies other states with an increase in new home sales
Victoria defies other states with an increase in new home sales
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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.
“New home sales in the three months to August 2025 in Victoria were 6.7 per cent higher compared to the previous quarter and 23.8 per cent greater than the same period a year earlier,” added Mr Devitt.
“Strong population growth and tight labour markets across Australia had been bringing home buyers back to the market in a number of states, while shortages of affordable shovel-ready land held back the market in Victoria.
“Three cuts to the RBA’s cash rate have helped catalyse underlying housing demand in Victoria, with both new home building activity and prices in the established housing market picking up this year.
“The peak of the coming cycle will be determined by how quickly policymakers can bring shovel-ready land to market, address shortages of skilled labour and reduce tax and regulatory burdens on home builders and buyers.
“First home buyers, in particular, face significant hurdles to obtaining a mortgage and realising the dream of homeownership.
“The supply side stimulus resulting from the Australian Government’s decision to remove the requirement for mandatory Lenders’ Mortgage Insurance (LMI) for first home buyers, will boost new home sales.
“Reducing the barriers to entry for first home buyers will lead to an increase in housing supply, putting downward pressure on prices beyond the short term and increasing rates of homeownership,” concluded Mr Devitt.
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Private new home sales - Victoria
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Victoria defies other states with an increase in new home sales
“Victoria saw a 7.1 per cent increase in new home sales in August, while the other four large states all declined,” stated HIA Senior Economist, Tom Devitt.
New home sales remain around three-year high
“The volume of new homes sold (contract-to-build) nationally decreased by 1.2 per cent in the month of August 2025,” stated HIA Senior Economist, Tom Devitt.
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