According to PropTrack’s New Houses Report from June 2024, enquiries for new houses have climbed by 27%, while property views for these properties increased by 9% over the previous year.
Comparatively, the data shows that views and enquiries for all available homes climbed by 7% and 11%, respectively.
Although there are more properties posted for sale this year than in 2023, demand still exceeds supply, which is driving buyers towards the new house market. Compared to the previous year, now has 6.64% more new development listings. However, the pace at which new developments are approved for construction is still slow and insufficient to keep up with the population’s expanding demands.
Despite declining (but still significant) immigration and a decline in new home development “in the face of cost pressures and capacity constraints,” the housing shortage will only become worse.
Furthermore, following a 2.7% increase in March, the Australian Bureau of Statistics (ABS) provided statistics on building approvals for April that revealed a 0.3% decrease in housing approvals.
As to the ABS, the seasonally adjusted estimate for private sector house approvals decreased by 1.6% after rising by 4% in March, while the private sector dwellings, which do not include approved homes, decreased by 1.1% after rising by 5.7%.
The research states that because of the concentration of listings, new apartment buildings in central Melbourne and the Gold Coast have drawn the most enquiries from potential purchasers. In May, however, Canberra had the highest number of enquiries per listing, followed by Melbourne’s Richmond-Tweed area.
Because newly constructed homes are more expensive than previously owned ones, developers are focusing on the downsizer market and affluent consumers. This tendency drives more First-Time Homebuyers out of the new house market and exacerbates the scarcity of affordable housing.
But, the price difference between established properties and new constructions is starting to close, making new constructions a viable option for home buyers again, as property prices continue to rise and reach record highs.
Synopsis
There is still a lot of demand in the Australian housing market, especially for new construction. According to PropTrack’s June 2024 New Houses Report, there has been a notable increase in demand for new homes:
- New home enquiries increased by 27% in comparison to the previous year.
- The property views of newly constructed homes also rose by 9%.
Despite an increase in the total number of homes for sale, this spike occurs. Nevertheless, the rate of new development approvals has not kept up with the demand, creating a scarcity and driving consumers towards new construction.
The price difference between newly constructed properties and established ones is getting closer, even if affordability is still an issue. For some purchasers, this tendency along with growing real estate prices often makes new homes a more attractive alternative.
Getting Around the Current Real Estate Market?
Particularly for new homes, the Australian housing market is competitive. Getting finance for the home of your dreams might be challenging due to shifting trends and growing costs.
Nfinity Financial can assist.
Our knowledgeable mortgage brokers can assist you with the procedure, assess your financial status, and identify the best lending choices for the purchase of a new residence.
For a free consultation, get in touch with Nfinity Financials right now or Schedule a consultation call at 1300 GET LOAN today.
