Buyer interest in new properties surges: PropTrack

PropTrack’s New Homes Report June 2024 has found that property views for new homes on realestate.com.au rose by 9 per cent compared to the previous year, while inquiries for these properties increased by 27 per cent.

In comparison, views and inquiries for total properties for sale increased by 7 per cent and 11 per cent, respectively, according to the data.

PropTrack’s senior data analyst Karen Dellow said that despite more homes being listed compared to last year, “demand is still outpacing supply, pushing property seekers towards the new homes market”.

“The number of new development listings on realestate.com.au has increased by 6.64 per cent from last year. However, building approvals for new developments remain sluggish and insufficient to meet the population’s growing needs,” Dellow added.

Indeed, AMP’s chief economist Shane Oliver recently stated that housing undersupply is likely to worsen before recovering.

Oliver stated that the housing shortfall will continue to deteriorate despite slowing (but still high) immigration levels and depressed housing construction in the “face of cost pressures and capacity constraints”.

Further, April’s Building Approvals data released by the Australian Bureau of Statistics (ABS) showed a drop of 0.3 per cent in dwellings approved following the 2.7 per cent rise in March.

According to the ABS, the seasonally adjusted estimate for private sector house approvals fell 1.6 per cent following a 4 per cent rise in March, while private sector dwellings excluding houses approved fell 1.1 per cent after a 5.7 per cent rise.

According to the report, new apartment developments in inner Melbourne and the Gold Coast have attracted the most inquiries from prospective buyers as a result of the concentration of listings.

Meanwhile, Canberra had the most inquiries per listing in May, which was followed by the Richmond-Tweed region in Melbourne.

Dellow further stated: “The higher cost of new apartments and houses compared to established properties has led developers to target the downsizer market and wealthier buyers.

“This trend exacerbates the shortage of affordable housing, pushing more first home buyers out of the new homes market.

“However, as property prices continue to rise and reach record highs, the price gap between established properties and new constructions is beginning to narrow, making new constructions a viable option for home buyers again.”

[RELATED: Housing supply likely to worsen before it improves: Economist]

Adrian Suljanovic is a journalist at Broker Daily with more than two years experience reporting on all facets of the third party distribution channel.

Adrian has written for a range of business and finance titles including IFA, Investor Daily and Lawyer’s Weekly before joining the mortgages team in 2022.

He graduated from the University of Wollongong in 2021 gaining a Bachelor of Communication & Media with a major in Digital & Social Media.

E-mail Adrian at: This email address is being protected from spambots. You need JavaScript enabled to view it.