Australian new home sales plunge 20 per cent amid housing slowdown
Australia’s new home market is showing signs of a sharp slowdown, with sales falling 10 per cent in August and almost 20 per cent over the past three months.
Housing Industry Association (HIA) data shows new home sales have declined for four consecutive months. Sales were also lower than a year earlier, highlighting growing pressure on the construction sector.
HIA chief economist Tim Reardon said higher interest rates, recent tax changes and wider economic uncertainty were combining to weaken demand.
He warned that further rate increases could put additional pressure on new home construction, with investors and households becoming more cautious.
Sales declined across all mainland states during the three months to August. National sales were 19.3 per cent lower than the previous quarter and 7.7 per cent below the same period last year.
The weakness comes as the broader housing market also faces pressure. Cotality reported that home values fell across almost 95 per cent of Australian suburbs in August, while national property values dropped 0.9 per cent for the month.
Higher-value properties have recorded some of the largest declines, with Sydney’s top-end house values down 10.7 per cent from their peak and Melbourne’s down 10.5 per cent.
Housing construction is also weakening. Australian Bureau of Statistics figures showed total dwelling approvals fell 3.6 per cent to 17,687 in July. Private house approvals dropped 4.2 per cent to 10,199.
The federal government says its housing policies are focused on increasing supply. Prime Minister Anthony Albanese has pointed to a 27 per cent rise in loans for new builds, while Housing Minister Clare O’Neil said approvals were 9.1 per cent higher than a year earlier.
However, construction activity remains below the level needed to meet national housing targets.
Only 393,193 dwellings had been approved against the 480,000 required to remain on track for the first two years of the National Housing Accord’s 1.2 million-home target — a shortfall of 86,807 homes.
The latest figures highlight the challenge facing Australia’s housing market as borrowing costs, taxation changes and construction pressures continue to affect both demand and new supply.
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Source : News.com
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