“Very strong” post-builder incentive for new home sales

“The new home market is starting to find its new post-HomeBuilder equilibrium, after a roller coaster of sales over the past 18 months with the negative impact of COVID lockdowns and then the HomeBuilder stimulus,” she said.

“This new balance is very strong. Sales since the end of HomeBuilder are the strongest since the same period in 2017. ”

The HIA New Home Sales report is a monthly survey of the top home builders in the five largest states and is a leading indicator of future single-detached home construction.

Ms Lillicrap said the high level of housing construction activity suggests that the current boom in housing construction will continue through 2022.

“The demand for new housing continues to exceed the capacity that the industry can provide. This is evident in the volume of work approved but not yet started, which is at its highest level in over a decade, ”she said.

“The continued demand for single-family home construction will continue to create strong employment opportunities through 2022 and into 2023.”

WA recorded the strongest rebound from pre-COVID levels, with sales up 45.8% from same period in 2019, boosted by HomeBuilder and state government subsidy for the construction bonus.

Sales in New South Wales increased 42.3% from the three months to October 2019, “although the state had very low adoption of HomeBuilder and did not experience the same boom compared to other states, ”Ms. Lillicrap said.

“Instead, the market has slowly trended higher since it hit a low point in early 2020.”

In the rest of the states, sales rose 2.1% in Queensland compared to the same period in 2019. However, sales were down 1.3% in South Africa and 7.5% in Victoria.

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