Australian New Home Sales Surge 17 Percent Despite Rising Borrowing Costs
New home sales in Australia increased by 17.0 per cent in March. The March quarter saw a 31.9 per cent increase compared to the same period last year. These figures come from the Housing Industry Association's New Home Sales report, which surveys the largest volume home builders in the five biggest states. Demand for housing is supported by population growth and low unemployment, which continue to underpin activity despite rising borrowing costs. The industry faces constraints in the capacity to respond to this demand. The cost of skilled labour and materials is rising and is expected to continue through 2026. Higher energy costs may increase the production costs of steel, bricks and concrete. This will place further upward pressure on construction costs later in 2026.
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