Building Numbers Dropping
The number of new homes completed in the past quarter has dropped substantially.
According to the latest Australian Bureau of Statistics figures, the number of new dwellings completed is down by 12.5% compared with the same time last year.
There were 41,432 homes completed during the June 2025 quarter compared to 46,151, a year earlier.
The data also shows a drop in the number of homes on which construction started in the June 2025 quarter with the total number of dwelling units commenced down by 4.4% and the value of building work also dropping.
The Urban Development Institute of Australia’s 2025 State of the Land Report forecasts a supply shortfall of about 400,000 dwellings for the combined capital cities by 2029.
It says persistent underbuilding relative to population growth and challenges in the construction sector are major contributing factors.
HIA chief economist Tim Reardon says Australia started on 60,960 fewer homes than is necessary in FY2025 to meet the government’s target of 1.2 million new homes over five years.
Investor Activity Heats Up
Investor activity has hit an eight year high, with about one in seven Australians now owning a rental property.
The REA PropTrack Terri Scheer Investor Report, shows new investor lending has risen steadily with the highest increases of 16% in Queensland and South Australia.
Compared to the previous financial year, investor loans in New South Wales are up by 12% and Western Australia is up 10%.
The data shows investors are also returning to Victoria with lending up 9%, despite a major exodus by investors in the past two years because of increased State Government fees and levies.
Canberra is the only capital with a drop in investment loans – down 15% on the previous financial year.
Terri Scheer executive manager Carolyn Parrella says the market is favourable for sellers.
“With more than 90% of investment properties selling for more than their purchase price, the current market conditions could present a lucrative opportunity for property investors,” she says.
Regions Still Hot
Demand has not yet eased for property in Australia’s regions with new Housing Industry Association (HIA) data labelling the move from city to country a “sustained trend”.
The Housing the Regions report, says the movement stronger than it was during the height of the pandemic.
The growing demand means housing policies need to deliver more to regional Australia the report says.
“This shift highlights the importance of the need for appropriate investment in the regions to bolster services, skills and infrastructure needed to support a growing population,” it says.
HIA Chief Executive of Industry and Policy Simon Croft says three things are hampering delivering more housing in regional Australia:
- Access to shovel ready land
- Lack of investment in enabling infrastructure for new housing estates
- Construction worker shortages
“There are now 8.5 million people living in regional Australia,” he says.
“This shift in population highlights the importance of the need for appropriate investment in the regions to bolster services, skills and infrastructure needed to support a growing population.”
Where Properties Sell Fastest
The time it takes to sell a house has risen slightly but new data shows properties are still selling incredibly fast in some locations.
Cotality data shows the average days on market hit 30 days, in the three months to September - up from 27 days at the same time last year.
The fastest capital city to get a deal over the line is Perth with an average of just 12 days on market, while Brisbane is next with 21 days on market.
The recent strength in the Darwin market has driven down selling times from 51 days to 39 days and Melbourne has also fallen from 35 to 32 days.
Despite the strength of the Darwin market, Regional Northern Territory has the longest days on market of 89 days from listing to achieving a sale.
In capital city markets, Canberra has the longest days on market of 44 days.
At the same time, vendor discounting, the amount a seller must reduce their original asking price to secure a sale, is slightly lower than a year ago, with the national rate at 3.2% compared to 3.3% in September last year.
