New home sales up by one-third

Sales of new homes have increased by one-third over the past year, a monthly survey of Australia’s home builders has revealed.
The HIA New Home Sales report shows that sales increased by 17 per cent in the month of March, despite the rise in the cash rate and fuel prices.

HIA Chief Economist Tim Reardon remarked that sales of new homes have been increasing since early 2025 and the disruptions of the past two months have not slowed this momentum, with sales for the March quarter 31.9 per cent higher than at the same time last year.

“This is a strong result given the impact of two rate increases and heightened global uncertainty”, Reardon said.

“This likely reflects the strength of the recovery that was underway prior to the increase in rates and the strong growth in established home prices over the past year.

“More broadly, demand for housing remains strong, supported by strong population growth and low unemployment. These structural drivers continue to underpin activity, even as borrowing costs rise”, he concluded.

Queensland recorded the largest monthly increase in March, with a 34.3 per cent increase. This was followed by South Australia (up 22.5 per cent), Victoria (19.1 per cent) and New South Wales (11.8 per cent) with Western Australia the only state to see a decline in new home sales contracts (0.3 per cent).