Home Insights PropTrack New Homes Report – March 2022

PropTrack New Homes Report – March 2022

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Inquiries about properties at realestate.com.au decreased in February 2022, and inquiries about new homes were even lower than total inventory.

Inquiries about new homes decreased by 13% in January 2022, down 17% year-on-year. In contrast, inquiries for all properties in the Purchases section decreased by only 5% month-on-month and 2% year-on-year.

It usually decreases in February every year. However, the decline in February 2022 was 1.4 times that of the 2021 concurrency.

It’s no coincidence that this is the same month that new listings (for new and existing properties) surged 27.8% and total listed inventory increased 11.3% month-on-month.

Due to the lack of established real estate available on the market, real estate seekers have been partially attracted to the development of new homes during the pandemic.

In addition, new development projects increased by 3% month-on-month, but have been steadily decreasing since November 2020.

Soaring construction costs caused by supply chain problems can also be causing inquiries to be eased, as the uncertainty in final construction costs can be undesirable for new construction.

Inquiries by project type

For specific project type inquiries, apartment development inquiries decreased by 14% month-on-month and 10% year-on-year.

Land real estate decreased 11% month-on-month and 19% year-on-year.

Inquiries about life after retirement decreased by 13% month-on-month and 7% year-on-year.

No state or project type is driving the decline more than others. There is a total reduction in inquiries.

When investors re-enter the market, first homebuyers retreat

Investors increased by 12%, while the percentage of first-time homebuyers looking at new properties fell by 9% in February.

Currently, there are few incentives for first-time homebuyers, so their percentage of those considering new home projects is comparable to those who consider themselves “buyers.”

We receive more inquiries from the first homebuyers in South Australia than other types of buyers.

First South Australian homebuyers are eligible for a $ 15,000 grant for new builds as long as their total assets are less than $ 575,000.

Similar incentives are available for VIC. However, in cities with much higher real estate prices, the grant is only $ 10,000.

The largest increase in investor inquiries from the previous month was in South Australia, followed by Queensland and Victoria.

Most popular projects

The top 10 most frequently asked questions about apartment development in February were all QLD or NSW, with the most inquiries at Surfers Paradise, Palm Beach (both QLD) and Rouse Hill (NSW).

Jade’s apartment in Albion, Brisbane was the most inquired about the apartment project, beating EVA Tenth Avenue in Palm Beach, Queensland, which was number one in December and January.

The most inquired about the apartment project in February was Jade from Albion, Queensland. Source: realestate.com.au

The Queensland apartment project also received the most inquiries by list, 453, 26% higher than the average 358 VICs.

Forest Ranch, located in Huntley, New South Wales, has received the most inquiries about residential and land real estate for the third straight month.

The most inquired suburbs were Ripley, Queensland, Tarneit, Victoria, and Huntley, New South Wales (home of the most viewed projects above).

Huntley also has the highest average number of queries per list at 814, even though he currently has only one project.

Future outlook

If the increase in new listings continues, those looking for real estate may refocus on established housing rather than new buildings.

And unless new home inventory is available, buyers have less choice.

Data from the Australian Bureau of Statistics show that approval of new homes has been steadily declining since its peak in March 2021. This suggests that the number of properties for sale will decrease in the future.

Without incentives to encourage new home construction, inquiries about new developments can be delayed from fall to winter.

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