Fresh data released on new property sales state-by-state

Meanwhile, Queensland experienced the largest decline, with new property sales falling 5.5 per cent, followed by NSW with 1.7 per cent.

“New home sales had been at elevated levels for a number of years until they began to cool at the end of 2017,” Mr Reardon said.

“More recently the market has entered a significant downturn as other factors – regulatory restrictions, credit squeeze and falling market confidence – have accelerated this downturn.

“Sales for the three months to February are now 18.1 per cent lower than at the same time last year. Approvals for new homes, which is a trailing indicator of new home sales, show the market is 8.1 per cent lower than in the same three month period a year earlier.”

As a result of the reduced sale and approval levels, Mr Reardon added that the pipeline of completed work is beginning to dry up.

“With these lower levels of sales and approvals, the building work in the pipeline is being completed rapidly,” he said.

“This downward cycle is still expected to trough well above the long-term average as long as the effects of the credit squeeze start to moderate and sales pick up over the course of 2019.”