New Home Sales High

Australia’s new home sales have hit a three-year high, despite the rising costs of construction.

According to the Housing Industry Association’s New Home Sales report, in the June quarter,  new home sales across Australia increased by 18.8%.

HIA Chief Economist Tim Reardon says it is the strongest performance for new home sales in almost three years.

He says sales volumes are up in all main states, led by Victoria (+27.7%), Queensland (+26.2%), Western Australia (+11.3%), South Australia (+9.9%) and New South Wales (+9.3%).

According to the latest Construction Market Insight Report, by Rawlinsons, construction costs are set to continue to rise in capital cities throughout 2025 with increases between 4% in Canberra and 6% in Brisbane.

It says infrastructure development for the Brisbane 2032 Olympic Games and Queensland’s Hospital Capital Expansion Program is adding to demand and costs there.

New Australian Bureau of Statistics figures on building commencements show an increase in work getting underway in the March quarter.

It says the total number of dwellings underway rose by 11.7% during the quarter to 47,645. The biggest increase was for units, which are up 21.8% over the quarter, compared to houses, which are up 6.3%.

The value of building work underway also rose to $38.9 billion.