New Home Sales Near Three-Year High

Rising prices in the existing house market are leading to more Australians building new homes, with sales at higher levels than at this time last year.

This is despite a 6.4% drop in new home sales between June and July, according to Housing Industry Association data.

HIA Senior Economist, Maurice Tapang, says despite the monthly decline, new home sales in the three months to July 2025 increased by 15.9% – the highest level since the September quarter of 2022.

“The fall in sales in July was driven by declines in New South Wales, Victoria and Queensland, while gains were recorded in South Australia and Western Australia,” he says.

Tapang says demand for new homes is increasing on the back of ongoing population growth and low unemployment.

All states recorded increased new home sales in the three months to July 2025 compared to the previous quarter, led by Victoria, which is up 23.4%, South Australia,  23.1%,  New South Wales, 18.8%, Queensland, 13.3% and Western  Australia, 2.6%.