Buying a home is one of life’s biggest events, and an increasing number of buyers are choosing to build their own.
In a significant shift, nearly one in three Australian homebuyers, or around 31%, now prefer building their own new homes over purchasing existing properties. According to the March to December 2023 ABS Building Activity reports and PropTrack data, more than a quarter of total residential dwellings were new constructions, marking an increase from previous decades’ figures.
Paul Ryan, PropTrack’s Senior Economist, noted that there were around 170,000 new home completions last year out of approximately 550,000 transactions, indicating that roughly 31% of buyers chose a brand new dwelling. This trend has been driven by lifestyle changes, financial incentives, and a desire for eco-friendly options. More recently, the push for new builds to address the nation’s housing crisis has further propelled this trend.
New Homes: A Solution to the Housing Shortage
Experts, government, and industry leaders agree that building new homes is crucial to addressing the current housing shortfall. In August 2023, the National Cabinet, consisting of the Prime Minister and state and territory leaders, set a new national target of building 1.2 million well-located homes over five years, starting July 1, 2024. This goal increased the previous target of one million homes under the National Housing Accord by an additional 200,000 homes.
This approach aims to ease demand pressures, provide more people with suitable housing, and stabilize the market. New constructions can incorporate modern, energy-efficient designs that lower living costs and can be strategically located to reduce urban sprawl and utilize existing infrastructure.
New Builds: A Respite for Lengthy Buyer Journeys
Research shows that many buyers spend months deliberating before considering a brand new property, unnecessarily extending the purchasing process. According to REA Group’s Developer Insights Series 2024, the average apartment buyer journey in 2023 lasted around 16 months, with 12 months dedicated to research. For standalone houses, the journey extends to 23 months, with about 16 months spent researching.
This lengthy process often means buyers miss out as the property market shifts. Considering new builds earlier can help secure a home at a better price, offering customization, modern technology, and financial savings from the start. Mr. Ryan highlighted that new builds are often more affordable, noting that the sooner people commit to the building journey, the sooner they can choose the option that best suits their needs and get started.
New Build Options
Many people discover the idea of building a new home while searching for an existing one, often because they’re priced out of their desired area or can’t find a home that meets their needs. Others consider upgrading an older home but find renovations too cumbersome and costly. Regardless of the reason, buyers will find plenty of choices when it comes to new builds.
“House and land packages, where developers handle everything, are the most common,” Mr. Ryan explained. “These are typically in new suburbs and offer a turnkey operation, with buyers able to pick fixtures, fittings, and the layout. It’s also very common to buy an apartment off the plan, which takes a bit longer but allows buyers to choose the fittings and fixtures. Then there are townhouse infill developments, which maximize available land and offer modern living spaces within established communities.”
The Case for Buying New
Creating a new home has significant upsides that make the process worthwhile. Firstly, you can tailor your home to your specific wants and needs, including choosing ideal colors, materials, and layout. Building new also provides access to the latest technology, energy efficiency, and modern design trends, options not available with existing properties without costly renovations.
“We know from the research that there are certain features people are looking for,” explained Mr. Ryan. “Garages, the number of bedrooms, and creature comforts like climate control are really important. Building new also has financial benefits, as new builds tend to be more affordable than existing stock, especially in new suburbs at the edge of the city.” Additionally, new homes come with safeguards such as comprehensive warranties and lower initial maintenance costs, providing buyers with peace of mind.
The Build Process: Easier Than You Think
There is a common misconception that building a new home is overly complex. However, with the right builder and a bit of research, it’s straightforward and manageable. “There are more options these days, and builders are tailored to niche offerings,” Mr. Ryan said. “Builders are much more aware that people want choice, and one of the benefits of bigger developments is they offer a turnkey aspect, taking the hassle out of building.”
Interested in learning more? The first step should be looking at new home resources online. Readers can browse new master-planned communities and apartment projects in all of Australia’s major cities. There’s also the option to research builders for a more personalized journey and plenty of information on designing your dream home, including floor plans, facades, and interior features.
