Australia’s appetite for new homes has reignited, with buyers showing renewed confidence despite ongoing cost pressures in the building sector.

According to the Housing Industry Association’s (HIA) New Home Sales report, the June quarter saw an 18.8% lift in national new home sales, marking the strongest quarterly result since 2021. HIA Chief Economist Tim Reardon notes this rebound isn’t isolated — it’s broad-based and consistent across the major states. Victoria led with a 27.7% surge, closely followed by Queensland (+26.2%), WA (+11.3%), South Australia (+9.9%), and NSW (+9.3%).

What’s driving this upswing? Buyers appear to be capitalising on stabilising interest rates, greater clarity on the economic outlook, and a growing belief that construction timelines, while still stretched, are becoming more predictable. At the same time, however, challenges remain. Rawlinsons’ Construction Market Insight Report forecasts further increases in building costs through 2025 — with Brisbane expected to see the steepest rise of 6%, partly due to Olympic infrastructure and hospital expansion programs placing extra demand on trades and materials. Yet builders and developers are pushing ahead. 

ABS data shows 47,645 dwellings commenced in the March quarter, an 11.7% increase quarter-on-quarter. Unit construction led the charge (+21.8%), signalling renewed confidence in medium-density living, while house starts also rose by 6.3%. The total value of construction underway reached $38.9 billion, reflecting not just volume, but also the shift towards higher-spec builds and inflationary material costs.

For buyers, this renewed momentum signals an opportune time to enter the market — before building costs escalate further and before limited land supplies become even more competitive.