Sales of new homes have risen to the highest level in the past 12 months, although still not at levels to address the ongoing shortage of new dwellings across Australia.

HIA Economist Maurice Tapang says new home sales were up 16.5% in April. Low levels of unemployment, recovering real wages and elevated housing demand from ongoing population growth are boosting sales. “New home sales data have signalled that home building may be past its trough, confirming our expectations of a pick-up in activity in 2025,” Tapang says. The growth is being driven by the Queensland, Western Australia and South Australia markets.

“Sales have also improved in New South Wales at the start of this year, although this is coming off anaemically low levels in the last two years,” Tapang says. 

Victoria did not fare so well, with new home sales declining for three consecutive months.