OPENING LINES HOMEBUYERS ARE FEELING MORE CONFIDENT ABOUT BUILDING A HOME, WITH NEW HOUSE SALES RISING DUE TO THE ONGOING HOUSING SHORTAGE AND EASING INTEREST RATE JITTERS. Source- https://www.realestate.com.au/, Ben Dorington, First Published July 17, 2024 TNew Housing Industry Association (HIA) figures showed that new house sales increased 15.7% across the country during the three months to June, compared to the previous quarter, and were 20.4% higher compared to the same period last year. The uptick in new house sales is a welcome sign for Australia’s challenged home building industry, which is still building homes at levels below what’s needed to house our growing population. HIA economist Maurice Tapang said Western Australia, Queensland and South Australia were doing the heavy lifting on the new house sales front. “With the sales recovery in these markets now sustained, an increase in the number of new detached houses commencing construction will be observed in the second half of this year, albeit from a low base,” Mr Tapang said. “Market confidence is returning as the impact of rate increases dissipates and the shortage of housing stock makes new home building increasingly attractive. “These three markets have seen demand for new homes increase due to strong employment opportunities and relatively affordable land, driving local population growth.” New house sales increased 15.7% nationally during the three months to June, compared to the previous quarter. Picture: Getty However, NSW and Victoria new house sales remained weak during the quarter due to the higher land costs in Sydney and Melbourne. Mr Tapang said sales in NSW and Victoria had also been constrained by additional regulatory costs and higher taxes, charges and fees in these markets. Metricon general manager of Vic sales and marketing Drew Glascott told realestate.com.au that the demand for new homes was robust, having seen a 40% increase in enquiries. “The surge in new home sales has been driven by the introduction of significant government incentives for first-time homebuyers,” Mr Glascott said. “For instance, the Queensland government’s doubling of the first home buyer grant to $30,000 for eligible buyers has led to a marked increase in inquiries and sales. 7 BUSINESS VIEW OCEANIA VOLUME 06, ISSUE 09
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