“Sales of new detached homes appears to have stabilised following the end of HomeBuilder at elevated levels,” stated HIA Economist Angela Lillicrap.
The HIA New Home Sales report – a monthly survey of the largest volume home builders in the five largest states – is a leading indicator of future detached home construction.
“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. This suggests that the market is finding it’s new post-COVID equilibrium,” added Ms Lillicrap.
“This new equilibrium is very strong. Sales since the end of HomeBuilder (April 2021 – October 2021) are the strongest they have been since 2017 when over 115,000 detached homes commenced construction.
“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,” concluded Ms Lillicrap.
In the three months to October 2021, sales increased in Western Australia by 45.8 per cent compared to the same period in 2019. Similarly, New South Wales was up by 42.3 per cent and Queensland was up by 2.1 per cent. Sales declined in South Australia (-1.3 per cent) and Victoria (-7.5 per cent) over the same period.