QUEENSLAND’S new home market is heating up, with sales of newly built homes jumping 25 per cent in September – part of a nationwide surge sparked by lower interest rates, planning reforms and renewed confidence among first-home buyers.
According to the Housing Industry Association’s (HIA) latest New Home Sales report, new home sales soared 25.9 per cent nationally, the biggest monthly increase since the HomeBuilder boom of early 2021.
HIA Chief Economist Tim Reardon said the spike reflected a turning point for the construction sector, particularly in states like Queensland, where demand had been steady but restrained.
“The cut to the cash rate is the primary driver of the rise in sales this year,” Mr Reardon said.
“We’re now seeing more households choosing to build because it’s becoming cheaper than buying an established home.”
Queensland recorded a 25 per cent monthly lift in new home sales, behind only Victoria and New South Wales, where confidence has rebounded sharply after a sluggish start to the year.
The removal of Lenders Mortgage Insurance (LMI) for first-home buyers has also played a major role, with many builders reporting a noticeable increase in enquiries and contracts signed by new entrants to the market.
“Around a third of all new homes are built by first-home buyers,” Mr Reardon said.
“Lowering the upfront costs of borrowing is encouraging them back into the market without increasing their financial risk.”
Queensland’s strong population growth, tight rental market and ongoing infrastructure investment have also helped drive demand for new housing, particularly across South East Queensland.
Mr Reardon said further policy reforms – including faster development approvals, lower infrastructure charges, and planning streamlining through complying development pathways – were helping to unlock more housing supply.
Despite the positive momentum, the HIA warns that Australia is still likely to fall short of its 1.2 million homes target, but says policy levers are now “moving in the right direction”.
“If these trends continue, 2026 could see a genuine recovery in new home building – particularly in Queensland’s growth corridors,” Mr Reardon said.
