Brisbane Olympics set to boost commercial property
Brisbane’s residential and commercial property markets are set to receive a huge boost in property price growth, as th...
After an iffy start to the year, new data suggests that the level of new home sales in Australia has now returned to growth.
HIA’s latest New Home Sales report noted an increase in sales activity of 15.2 per cent in May 2021 compared with the previous month.
In addition, HIA’s latest data found that sales in the two months since the end of the federal government’s HomeBuilder policy were 2.9 per cent higher than the same time in 2019.
According to HIA economist Tom Devitt, “This solid level of sales in April and May indicates ongoing demand for new detached homes, even in the absence of stimulus.”
Recent ABS data revealed an unprecedented increase in the volume of detached buildings being built in Australia over the last year.
Despite the fact that NSW saw “the smallest uptake of the HomeBuilder program”, Mr Devitt said the state is now “demonstrating the strongest demand following the end of the program”.
In May, NSW led the pack with new home sales growth of 36.9 per cent. Western Australia trailed with 26 per cent. Queensland came in third with 4 per cent. Meanwhile, both South Australia and Victoria contracted.
“New South Wales has driven the solid result of the last two months more than any other state. Sales in April and May were 36.9 per cent higher in this state than at the same time in 2019,” Mr Devitt said.
Mr Devitt argued that this strength of demand in NSW “suggests that other states will also begin to demonstrate a solid demand for new homes as the impact of HomeBuilder fades”.
Citing low interest rates and consumer confidence in the housing market as critical drivers of demand, HIA predicted that this year will see a return of new homes commencing construction.