The sales of new homes in Australia increased by 4.1% in January 2025. NSW, South Australia, and Queensland were the main drivers.
The Housing Industry Association’s (HIA) New Home Sales Report showed that the new home sales for January increased by 4,1%, counteracting the low sales of November and December 2024.
This report is a survey of home builders from Australia’s five biggest states. It is used to predict future detached home construction.
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According to data, NSW experienced the largest increase in sales of new homes during the three months leading up to January. Sales increased by 70,5% compared to last year’s same period.
South Australia saw a 22.3% increase in new home sales, followed by Queensland with a 12.3% growth.
In Victoria, the new home sales were unchanged over the same period with a minus 0.5 percent decline.
Western Australia, however, recorded a decline of 26,1 per cent, which was attributed by the report to labour and capacity constraints.
According to HIA economist Maurice Tapang, the number of new homes sold in the three-month period ending January was also 4,1 per cent higher than last year.
“The monthly increase in new home sales occurred before the cash rate reduction in February, which should further enhance market confidence,” added Tapang.
According to the HIA’s economist, global sales volumes have been increasing from a very low base. This, he said, is consistent with current economic conditions.
“Unemployment is at very low levels while housing stock remains acutely short.”
He said that the low sales volume of Victoria and NSW stole the spotlight away from the other major States, which saw a significant improvement in sales.
“This likely reflects relative affordability in these markets. The cost of a detached house is prohibitively expensive for many households in Sydney and Melbourne,” Tapang commented.
The HIA report also revealed that the number of detached houses in the United States increased by 6.8% compared to 2023.
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“The increase in new home sales, and approvals for new detached houses is consistent with the expectation of an increased volume of homes beginning construction this year,” Tapang concluded.
