Queensland continues to lead the property pack

NEW home sales in the Sunshine State were up 53 per cent in the three months to August, compared to the same period in 2023.

And while new detached property sales nationally fell during August, the overall picture is still trending upwards, according to the Housing Industry Association.

Economist Maurice Tapang said strong internal migration was the main driver.

“Increasing activity in Queensland is counteracting weak new home sales in the two largest markets of NSW and Victoria,” added Mr Tapang.

“New home sales in Queensland increased by a further 3.8 per cent in the month of August, after recording a strong 15.6 per cent increase in July.

“This leaves new home sales in Queensland over the three months to August 2024 higher by 53.5 per cent compared to the same period in the previous year.

“Strong population growth, particularly from those moving from other states into Queensland, is supporting demand for new homes.”

Falling sales of new homes in SA and WA – from strong levels – is possible down to investor activity slowing down as it moves through a cycle of strong house price growth and low vacancy rates, according to Mr Tapang.

“In Victoria, new home sales have been very bumpy in recent months. The draw-forward of sales in April continues to affect sales in the months that followed,” he said.

“New home sales in NSW remains weak as the cost of delivering a new ‘house and land’ package in Greater Sydney remains elevated by regulatory changes and land prices.

“It has been more than ten months since the last rate increase. The continued undersupply of homes and robust labour market conditions are assisting a return of consumers to the new home market.

“It is increasingly evident that an increase in home building activity, expected towards the end of this year and into early next year, will be driven by those markets outside of Sydney and Melbourne,” concluded Mr Tapang.

New home sales in the three-month period to August 2024 increased in Queensland by 53.5 per cent compared to the same time in the previous year.

That was followed by South Australia (+25.0 per cent), New South Wales (+12.0 per cent).

Western Australia recorded a 14.2 per cent decline over the same period, followed by Victoria (-11.3 per cent).