SALES of new homes across Queensland have dipped 38.5% compared to the previous financial year.
Latest figures from the HIA new home sales report showed further dips of almost 5% in June, impacting heavily on high-growth areas such as Logan.
“The rise in the cash rate over the past year has seen a significant decline in the volume of new homes sales. This will result in the least number of new homes commencing construction for more than a decade in 2024,” HIA chief economist Tim Reardon said.
“The last year has seen the impact of a 4% increase in the RBA’s cash rate filter through to the new home market, compounding the impact of soaring construction costs across the industry.
“A significant number of existing projects are also being cancelled, as buyers find themselves unable to obtain finance after interest rates and construction costs continued upwards since they signed the contract.
“This lack of new work entering the pipeline will result in fewer projects being commenced, and the volume of work under construction shrinking rapidly from late this year.
“This will occur at the same time that Australia has a pre-existing shortage of housing, and overseas workers and students return to Australia in record numbers.”
Mr Reardon said addressing the shortage of housing required policymakers to stop increasing the cost of new homes through taxes and regulatory imposts.
“The more homes are taxed, directly or indirectly, the fewer homes will be built,” he said.
