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Sales of new homes across the country increased by 4.1 per cent in January 2025, with NSW, South Australia and Queensland driving the growth.
The Housing Industry Association (HIA) New Home Sales Report for January showed that new home sales increased by 4.1 per cent, counterbalancing the low sales in November and December 2024.
The report is a monthly survey of the number of home builders in Australia’s five largest states and is used as an indicator for future detached home construction.
According to the data, NSW saw the highest increase in the three months to January, with the sales of new homes increasing by 70.5 per cent compared to the same period last year.
This was followed by South Australia, which saw a 22.3 per cent increase in its new home sales volume, and Queensland, which saw a 12.3 per cent growth.
Over the same period, new home sales remained unchanged in Victoria, with a -0.5 decline.
However, Western Australia recorded a 26.1 per cent decline, which the report attributed to capacity and labour constraints.
HIA economist Maurice Tapang said the total number of new homes sold across the country in the three months to January was also 4.1 per cent higher than the previous year.
“The monthly rise in new home sales occurred prior to the cash rate cut in February, which should further boost market confidence,” added Tapang.
According to the HIA economist, global sales volume has been increasing from a low base, which he said was consistent with the current economic conditions.
“Unemployment remains at very low levels, while there remains an acute shortage of housing stock.”
He said the low sales volume in Victoria and NSW took away the spotlight from the other major states, which saw an improvement in sales volumes.
“This likely reflects the relative affordability of these markets, with the cost of a new detached house in Sydney and Melbourne prohibitively expensive for a larger number of households,” Tapang remarked.
The HIA report also showed the volume of detached houses nationwide increased, with 6.8 per cent more houses approved for construction compared to 2023.
“The rise in new home sales and new detached house approvals is consistent with expectations of an increase in the volume of homes commencing construction this year,” Tapang concluded.
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