Sales of new detached homes appear to have stabilised following months of record-breaking levels, according to a monthly survey of Australia’s largest builders.
The latest HIA New Home Sales report shows that 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.
HIA Economist Angela Lillicrap suggests this indicates the market is finding its new post-COVID equilibrium.
“Sales since the end of HomeBuilder (April-October 2021) are the strongest they have been since 2017 when over 115,000 detached homes commenced construction”, Lillicrap said.
“This indicates that the strong level of home building activity that is underway will be sustained throughout 2022.
“Demand for new homes continues to exceed the capacity that the industry can deliver. This is evident in the volume of work approved but not yet commenced, which is at its highest level in over a decade.
“The ongoing demand for detached home building will continue to create strong employment opportunities throughout 2022 and into 2023”, Lillicrap concluded.
In the three months to October 2021, sales increased in Western Australia by 45.8% compared to the same period in 2019. Similarly, New South Wales was up by 42.3% and Queensland was up by 2.1%. Sales declined in South Australia (down by 1.3%) and Victoria (7.5%) over the same period.
