Sales for new homes have stabilised at solid levels, according to the latest Housing Industry Association (HIA) New Home Sales report.
Angela Lilicrap, an economist at HIA, said that the end of the HomeBuilder scheme had marked the most impressive number of sales since 2017. From April to October, more than 115,000 detached homes have started construction.
“Following a rollercoaster of sales over the past 18 months with the adverse impact of COVID lockdowns and then the HomeBuilder stimulus, sales of new detached homes in the three months to the end of October were consistent with the previous three months,” Lilicrap said. “This suggests that the market is finding its new post-COVID equilibrium.”
Across the five largest states, sales were most robust in Western Australia at 45.8% higher than the same period in 2019, while New South Wales was up 42.3%. Queensland edged up 2.1%, while South Australia and Victoria recorded small declines at 1.3% and 7.5%, respectively.
Lilicrap said that this level of home building activity will likely be sustained throughout 2022, creating more employment opportunities until 2023.
“Demand for new homes continues to exceed the capacity that the industry can deliver,” Lilicrap said. “This is evident in the volume of work approved but not yet commenced, which is at its highest level in over a decade.”
