How the increase in new home numbers will help buyers - John McGrath

Recent promising data about the new housing market should help boost buyer sentiment in the current property correction, especially those buying for the first time. The statistics may also help the buyers slowly coming back to the market to purchase between now and Christmas. 

The latest Australian Bureau of Statistics’ (ABS) figures found that the new housing industry increased in the June quarter and across the year with just over 248,000 dwellings under construction in the June quarter. This is an annual rise of 4,601 properties.  

A total of 47,653 dwellings were completed as well, a 15.5% uptick on the June 2025 quarter. 

Plus based on seasonally adjusted numbers, new dwelling commencements rose 7% to reach 52,201 in the past quarter. 

Together, these figures are encouraging news for buyers.  

They’re also significant because the latest quarterly data gives us the first complete two-year picture since the Federal Government’s National Housing Accord commenced on July 1, 2024. 

While I think it’s always been pretty doubtful that we’ll reach the Housing Accord’s goal of building 1.2 million new homes before June 30, 2029, the recent ABS figures have confirmed this. 

The latest NAB Residential Property Survey also highlighted that construction costs continue to be the biggest obstacle to new housing supply with planning permit delays being the second biggest issue. 

Although the Federal Budget’s policy changes planned to attract investors to new rather than established housing, the NAB report found investor activity in both areas has fallen since the March quarter. 

The four rate hikes this year is slowing sales activity as well, particularly that of new builds as these properties are generally more expensive than established ones.  

But at the same time, there’s some positive signs for the new house market, especially the first home buyer government assistance programs that focus solely on these properties. 

New builds can also mean less stress, fewer ongoing and costly renovations, and strong appreciation for both first home buyers and more experienced ones. They are often built in fast-growing locations and master-planned communities, close to modern amenities. 

Meanwhile, the new year is just a few months away and with it, a possible stabilisation of the overall property market. Many buyers are more attuned to recent value changes and what 2027 could offer with the downturn now close to the bottom end of the correction. 

In this setting, brand new dwellings still hold a strong position and can offer positive opportunities for buyers, especially first-time ones.