HomeBuilder, combined with low-interest rates, changing population dynamics and improving market confidence, led to strong sales of new homes through to the end of 2020, a new report shows.
The HIA New Home Sales report has revealed that sales were 39.4% higher in the March 2021 quarter than the same time the previous year.
Increased activity was recorded across all the five largest states, compared to the same time the previous year. South Australia was up by 90.6%, followed by Queensland (54.9%) and Victoria (41.9%). New South Wales increased by 24.7% while Western Australia is up by 15.2% over the same period.
HIA’s Economist, Angela Lillicrap said that December 2020 saw a near record volume of new home sales as households rushed to finalise contracts to build a new home before the end of the $25,000 grant.
“This same effect can be seen in March as households rushed to get access to the $15,000 grant”, she added.
“Over the year to March 2021, sales increased by 42.6% compared to the previous year. This indicates a strong level of building activity will occur in 2021 and into 2022, providing employment to the construction sector and supporting the broader economy.
Lillicrap said that while sales over the coming months are expected to cool from recent highs, demographic shifts in population towards regional areas will continue to drive demand for new detached homes.
“Strong house price growth recently has also sparked FOMO in buyers which will also support the industry”, she concluded.
