
New home sales in Australia remained relatively stable in August, according to the latest monthly analysis from the Housing Industry Association (HIA).
While sales decreased slightly by 1.3% month-over-month, the three months to August showed a 4.6% increase compared to the same period last year.
HIA economist Maurice Tapang said, “It has been more than ten months since the last rate increase. The continued undersupply of homes and robust labour market conditions are assisting a return of consumers to the new home market.”
Queensland emerged as the standout performer, with new home sales 53.5% higher in the three months to August 2024 than the same period last year. The state saw a 3.8% increase in August, following a 15.6% rise in July.
Tapang attributed Queensland’s strong performance to continued population growth driving interest in building.
In contrast, Western Australia and Victoria experienced declines of 14.2% and 11.3% respectively over the same period.
New South Wales faced challenges due to regulatory changes and high land prices, particularly in the Greater Sydney area.
Victoria’s market was affected by a surge in contracts executed in April to avoid new energy efficiency standards, leading to subdued sales in subsequent months.
Despite the uneven results across states, Tapang expressed optimism about the overall market trend, stating, “It is increasingly evident that an increase in home building activity, expected towards the end of this year and into early next year, will be driven by those markets outside of Sydney and Melbourne.”
The HIA report suggests that while some states are experiencing slowdowns, the national new home market appears poised for continued growth, particularly in areas outside the major metropolitan centres of Sydney and Melbourne.