New home sales nationally fell by 1.3% in the month of August which leaves sales in the three months to August 2024 higher by 4.6% compared with the previous year. Source: Timberbiz
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.
“Increasing activity in other states, particularly in Queensland, are counteracting weak new home sales in the two largest markets of NSW and Victoria,” HIA Economist Maurice Tapang said.
“New home sales in Queensland increased by a further 3.8% in the month of August, after recording a strong 15.6% increase in July.
“This leaves new home sales in Queensland over the three months to August 2024 higher by 53.5% compared to the same period in the previous year,” he said.
Strong population growth, particularly from those moving from other states into Queensland, were supporting demand for new homes.
However, sales of new homes in South Australia and Western Australia fell in August from strong levels.
“It is possible that investor activity in Western Australia is slowing down as it moves through a cycle of strong house price growth and low vacancy rates,” Mr Tapang said.
“In Victoria, new home sales have been very bumpy in recent months. The draw-forward of sales in April continues to affect sales in the months that followed.
“New home sales in NSW remains weak as the cost of delivering a new ‘house and land’ package in Greater Sydney remains elevated by regulatory changes and land prices.”
Mr Tapang said it had been more than 10 months since the last rate increase. The continued undersupply of homes and robust labour market conditions were assisting a return of consumers to the new home market.
New home sales in the three-month period to August 2024 increased in Queensland by 53.5% compared to the same time in the previous year, followed by South Australia (+25.0%), New South Wales (+12.0%). Western Australia recorded a 14.2% decline over the same period, followed by Victoria (-11.3%).
