The Rise of New Home Construction in Australia: A Shift Toward Building Over Buying

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The landscape of Australian housing is witnessing a pivotal shift as nearly one in three homebuyers are now opting to purchase new homes or engage in building projects. This trend was highlighted in a recent episode of Real Talk, where Alice Piper discussed the booming popularity of new home construction with industry experts Paul Ryan, Senior Economist at PropTrack, and Stuart Penklis, CEO of development at Mirvac.

Paul Ryan provided some eye-opening statistics: “Last year, we saw 515,000 homes transact, and 33% of these were new constructions. It’s a significant shift, reflecting changes in buyer preferences and demographic trends.”

The demand for new builds is not just a fad but a reflection of deeper societal shifts. Australia’s consistent population growth and increasing affluence have led to greater demand for housing. Ryan elaborates, “As Australians get wealthier, we see an increase in spending on housing. People are valuing their space more, which is evident from the reducing average number of people per household.”

Stuart Penklis discussed the diverse range of options available in new housing, from house and land packages to high-rise apartments. He highlighted the changing preferences of homebuyers, “There’s a significant shift in how people view living in apartments, especially in inner-city locations. We’re seeing a demand for larger apartments, suitable for growing families.”

The benefits of considering new builds early in the property search process are numerous, according to Penklis. “Buyers can save both time and money by looking at new homes early on. The design, quality, and functionality of these homes cater well to modern lifestyles and can be more compelling than older homes.”

Moreover, the importance of new home construction in addressing Australia’s housing shortage was a focal point of the discussion. “Building new homes is crucial in tackling the ongoing housing crisis,” said Penklis. “We need to leverage recent investments in infrastructure to build more densely in urban areas, which is key to unlocking more housing.”

The episode concluded with a positive outlook on the future of new home construction in Australia. Ryan predicts that the trend will continue to grow, “We expect new construction to keep playing a major role in housing transactions, thanks to innovations that improve the liveability and functionality of homes.”

This shift toward new construction is reshaping the housing market, making it an exciting time for potential homebuyers to consider building new.

References:

https://www.realestate.com.au/news/real-talk-episode-45-buying-new-is-booming-almost-1-in-3-buyers-are-buying-and-building-new/