Home Insights PropTrack New Homes Report – February 2023

PropTrack New Homes Report – February 2023

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The new housing sector has shown some improvement despite the current housing market conditions.

There are some positive signs from the new housing market, with approvals up month-on-month.

new housing permit

Australian Bureau of Statistics (ABS) data showed the total number of approved homes increased by 18.5% in December.

Approvals for several significant apartment developments in New South Wales and Victoria fueled the rise.

Approvals increased in New South Wales (+48.4%), Victoria (+20.7%), Queensland (+8.3%) and Western Australia (+6.4%). However, it decreased in Tasmania (-49.7%) and South Australia (-24.6%).

Start of new housing construction

According to the latest available data, total housing starts fell by 5.2% to 45,489 units.

In September 2022, housing starts fell by 4.9% and the number of units by 5.2%.

As of September 2022, pipeline work has reached $66 billion, with $54 billion not yet completed and $12 billion not yet started.

There is a time lag between approvals and initiation, so the increase in new approvals may take some time. Therefore, starting data from March 2023 onwards, he is expected to see approval in December.

house under construction

Despite a decline in construction starts, the amount of housing under construction hit a record high of 244,479 units in September 2022.

New homes in the private sector hit a record high since March 2021, with 103,124 new homes currently under construction.

Some of the new builds currently under construction may be delayed due to the pandemic, supply chain issues, and high transportation costs, creating a backlog.

value of work done

Total new residential construction work increased 1.3% in the September quarter.

Home and unit completions increased by 1.5% and 3.9% respectively.

Driven by the popularity of HomeBuilder grants, home completions peaked in September 2021 but have since declined by 14.5%.

However, unit completions increased by 16% year-over-year.

current new development list for realestate.com.au

number of new developments listed in realestate.com.au Over the past 12 months, monthly inventory has been slightly up and down, and has remained stable.

New development increased in New South Wales (2.82%) and Washington (10.11%). However, QLD (-1.64%), SA (-1.96%) and VIC (-2.82%) all decreased.

top condominium development realestate.com.au

Newly built condominiums with the most inquiries in January Argyle SQCarlton, Melbourne.

VIC has the highest number of apartment developments currently on site (38%) and the highest number of leads. However, SA has the most calls per list with 48, followed closely by QLD with 42.

Surfers Paradise continues to top the suburban charts with a list of 16 new apartment developments.

Argyle SQ, Carlton Artist Impressions. Source: realestate.com.au

top house and land development realestate.com.au

Crescent MoonLocated in Crescent Head, New South Wales.

Again, VIC currently has the most development onsite and the most leads. However, SA has the highest number of calls per list, with 36, followed closely by NSW with 35.

Crescent Head, NSW, Crescent House and Land Location. Source: realestate.com.au.

Outlook for 2023

Rising interest rates and falling prices are slowing demand for new and existing properties. But the added uncertainty of rising material and labor costs is keeping property seekers away from new homes until prices stabilize.

Based on the approval figures, there are positive signs of an increase in new housing starts. However, the builder has had backlogs due to the HomeBuilder grant that continue to slow new development through the pipeline.

In-depth insights from PropTrack’s team of experts:

PropTrack 2023 Real Estate Market Outlook Report

PropTrack Global Search Report – 2022 Summary

Putting Australian property prices into perspective

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