New home construction is set to rise in 2024, driven by increasing investor demand for house and land packages.

Research from Oxford Economics Australia forecasts a 4.5% increase in total dwelling commencements for FY2025, with a further 4.3% rise expected the following year.

Timothy Hibbert, Head of Property and Building Forecasting at Oxford Economics Australia, notes that property investors are now taking a larger share of house and land purchases, as fewer off-the-plan apartment developments are available.

“In the past, first-home buyers accounted for a greater proportion of house and land sales, but their numbers have declined significantly,” he says.

Investor lending for new home construction has surged, with the number of loans issued to investors in Victoria rising by 76% and in NSW by 71% in December 2024 compared to five years earlier.

This trend is also emerging across other states, indicating strong investor confidence in the new housing market and ongoing demand for residential mortgage lending.