3 states where there are more new homes to buy

Building a home
Image: Building a home

The number of new homes to be built in Australia rose in May, though approvals were mostly for units, based on the latest data from the Australian Bureau of Statistics (ABS).

The total number of new units to get the go-ahead across the country hit 14,175 in May, while new house approvals hit 9,163. Together this represented a 5.5% increase for all approvals on April.

The key question then is, where can a would-be buyer look if they’re keen on a new home specifically?

There are three states worth checking out ahead of others, based on the latest new home approvals: Western Australia (up 8%), New South Wales (up 6%) and Queensland (up 4%). 

WA, NSW and QLD up close

WA is an interesting case study because it already has a limited supply amid a growing population. There aren’t many homes for sale at present, with about 2,000 houses and just under 1,000 units, as per figures from the Real Estate Institute of WA. So new home builds are much needed. 

Similarly, Queensland has seen good population growth and has benefited from Brisbane’s rising economy, which has meant property prices have gone up, generally. There's clearly a need for new homes to be built. 

More new homes in NSW are also welcome news for a lot of prospective buyers, given it’s typically the nation’s most competitive market. It’s also the city where a median house price of $1.6m (Domain) requires a $1.3m dollar home loan based on a $300,000 deposit (20%).

While Sydney's median price is still very high, recent months have shown a steadying of the sharp price gains of the past few years. In fact, in the year to July Sydney home prices are only up 6%, a much softer rise than in other capitals such as Perth or Adelaide, based on Corelogic’s figures. 

How do you pinpoint an area to buy a home in Sydney?

Still, even with winter’s chill, auctions have been pretty steady in Sydney over the past few months. In its most recent auction preview, Corelogic reported a higher number of auctions in the inner south west, North Sydney and Hornsby and the inner west, so those could be currently less competitive areas to explore. 

No, they won’t all be new builds but it should be noted that the NSW government recently targeted inner west suburbs such as Dulwich Hill, Ashfield, and Croydon, as well as northern suburbs such as Roseville, Lindfield, Killara and Gordon for higher density building, as per a report by the ABC. 

Further still, new home builds can be less expensive than existing properties if there’s a good supply of them and they aren’t pitched at luxury buyers. New home buyers can also benefit from a range of home buyer grants to help bring the total cost down. Good examples of these are the First Home Buyers Assistance Scheme or First Home Owners Grant in NSW.

Houses versus units to buy

Finally, there are far more houses for sale nationally than units, so depending on your state, the ratio of houses to units is worth checking. SQM Research reports around 231,000 properties for sale in June, with only 59,000 of those units (approx). 

This might be the case right now, but most new residential builds will likely be units and townhouses because governments are focused on increasing urban density in Australia, especially where space is limited. 

If you’re ready to buy and need a home loan, be sure to compare some of the leading home loans in the Mozo database below. 

Last updated 4 May 2025 Important disclosures and comparison rate warning*
What are your home loan needs?
Loan purpose
Buying or Refinancing
  • Promoted

    Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
    Comparison rate
    5.65 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • Built by CommBank
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
  • Promoted

    Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.78 % p.a.
    Variable
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $2,927
    Go to site
    • $0 application fee to pay
    • Unlimited additional repayments
    • Apply in as little as 15 minutes
  • Promoted

    Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.79 % p.a.
    Variable
    Comparison rate
    5.83 % p.a.
    Initial monthly repayment
    $2,931
    Go to site
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.
  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • Interest only
    • 20% min deposit
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    5.96 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • Free extra repayments of up to $25,000 during the fixed rate period.
    • Split loan available
    • Weekly, fortnightly, or monthly repayment options
  • Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.69 % p.a.
    Variable
    Comparison rate
    5.70 % p.a.
    Initial monthly repayment
    $2,899
    Go to site
    • Offset and non-offset options for flexible payments
    • No application and monthly account keeping fees
    • Get up to $4,000 cashback (T&Cs apply)
  • Fixed Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.69 % p.a.
    Fixed 2 years
    Comparison rate
    6.00 % p.a.
    Initial monthly repayment
    $2,899
    Go to site
    • Get up to $4,000 cashback (T&Cs apply)
    • Up to 12 months repayments in advance without penalties
    • Split loan available
  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
    Comparison rate
    5.65 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • Built by CommBank
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
  • Fixed Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.74 % p.a.
    Fixed 2 years
    Comparison rate
    5.81 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • $0 application fee to pay
    • Additional repayments up to $20,000/year
    • Apply in as little as 15 minutes
  • Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.78 % p.a.
    Variable
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $2,927
    Go to site
    • $0 application fee to pay
    • Unlimited additional repayments
    • Apply in as little as 15 minutes
  • Budget Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.79 % p.a.
    Variable
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $2,931
    Go to site
    • Get up to $4,000 cashback (T&Cs apply)
    • Split loan available
Showing 8 results from 415 home loans. Use the filters to see more

Want free expert advice on your home loan?

Whether you're looking to purchase a new home or refinance your existing loan, our friends at Aussie can help! Aussie advice is completely free of charge. PLUS you could win a share of $320K simply by booking an appointment.

Learn more

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.