The HIA New Home Sales report shows new home sales in SA increased 20.4 per cent in August, following a nation-leading spike of 35.5 per cent in July.
The latest monthly data puts SA ahead of Victoria (17.5 per cent growth) and Western Australia (11.3 per cent), while New South Wales experienced a fall (-2.6 per cent). Only Queensland recorded a higher increase.
South Australia also beat the national average, with new home sales across Australia increasing by 14.8 per cent in August compared to the previous month.
Over the last three months, South Australia has jumped 20.3 per cent compared to the preceding three-month period.
The report estimates the number of building contracts entered into from surveys taken of builders during August.
The report states South Australia’s “strong interstate migration and affordability advantages over the eastern states, along with recent favourable State Government policy changes” as key factors behind sustained future growth.
It comes after the Malinauskas Government abolished stamp duty for first home buyers of new homes. The reform was introduced to help first home buyers break into the market while boosting supply to offset increased demand.
Eligible first home buyers who build or buy a new home valued up to $650,000 can now receive up to almost $30,000 in stamp duty relief as well as a First Home Owner Grant payment of $15,000, bringing total relief from the State Government up to almost $45,000.
The June State Budget included a $474.7 million package to support the delivery of 3,600 new homes over five years and reduce the cost of housing for around a further 14,000 new homes.
As put by Nick Champion
This is another strong result for South Australia reflecting the work we are doing to support our building industry and economy.
We know the construction sector is facing pressure as new builds slow across the country, but SA continues to defy the downturn.
Measures like abolishing stamp duty for first home buyers and supporting new housing developments will only help fuel future growth.
We are committed to boosting supply across the State and these back-to-back results demonstrate confidence for our significant pipeline of future works.
