western australia sees new home sales in positive territory
New home sales are looking good for WA. Image: Canva.
  • New home sales fell by 7% across the nation for November.
  • Western Australia's lack of tradies is expected to keep a cap on growth in starts.
  • The state is also expected to remain out of cycle with the rest of the country.

New home sales have lifted in Western Australia, defying the national trend.

The Housing Industry Association (HIA) has released its latest New Home Sales report, a monthly survey of the largest volume home builders in the five largest states and is a leading indicator of future detached home construction.

Construction remains subdued across the nation

“Sales of new homes nationally have remained low throughout 2023 and this will see the volume of houses commencing construction continue to contract into 2024,” said HIA chief economist, Tim Reardon.

“The only exception to this low volume of sales is in Western Australia where it appears that house building will defy the efforts of the Reserve Bank,” added Reardon.

New home sales rise in WA

Following a trough earlier this year, the state has seen new home sales lift. Sales in the three months to the end of November were 49.1% higher than the same period last year.

New home sales, Western Australia

hia new home sales western australia chart november 2023
Source: ABS, HIA Economics.

“The strength of sales in Western Australia is now flowing through to a modest rise in approvals. This is likely to see a steady flow of new home starts for Western Australia in 2024,” said Reardon.

Unfortunately, a dearth of skilled tradies in Western Australia will keep a cap on the growth in starts, added Reardon.

“This is a very unique outcome and will see Western Australia remain out of cycle with the rest of the country.”

Tim Reardon, HIA

Australia to see historically low new house starts

“Nationally, new home sales across Australia fell by 7.0% in the month of November and remain at low volumes as rising interest rates continue to constrain house building,” said Reardon.

“This will see the volume of homes commencing construction continue to contract in 2024 resulting in the lowest number of new house commencements since 2012,” concluded Reardon.

Queensland the only other state to record a rise in new home sales

Comparing the three months to November 2023 and the same period last year, new home sales dipped by 0.1%, according to HIA figures.

For the same comparison period, South Australia recorded a 26.1% fall in sales, Victoria recorded a 14.2% fall, and New South Wales recorded a 9.4% fall.

Queensland saw sales rise 6.3%, and Western Australia recorded the aforementioned 49.1% uplift in sales.

You May Also Like

Australia’s inflation rate stays at 3.4%: What it means for borrowers and savers

Annual inflation for January remained steady at 3.4%, signalling stability since November 2021 and a trend towards the RBA’s target band.

Could Molonglo become Canberra’s sixth town centre?

Population is rapidly growing, and may surpass numbers in the City Centre and Woden Valley.

Peak industry body urges the Australian government to double $3.5B housing target incentives

PCA calls for doubling $3.5 billion funding for surpassing national housing targets, addressing critically undersupplied property market.

Experts Corner by The Property Tribune

Ko & NPA partner to launch several co-owned luxury properties at Mermaid Beach, Gold Coast

Ko's partnership with NPA Projects provides more opportunities to co-own off-the-plan holiday residences, including exclusive Gold Coast properties

Continue reading

Top Articles

Expert tips on how to be a successful property investor

Property expert and buyer's agent, Lloyd Edge, shares his insights.

Australian commercial property update: Industrial and tourism assets lead the pack in trying times

Commercial assets have faced volatility recently, driven by financing changes and demand fluctuations from institutions and funds.

WA has emerged as a property investment hub, and why that's a good thing

Eastern investors chase Perth's affordability, doubling the distance between home and investment in 2023, reveals MCG research.