Sales rise despite market headwinds
New home demand remained resilient in May despite a further 25 basis point increase in interest rates, marking the third rise of 2026. Gross sales across metropolitan and regional growth corridors increased by 15.5% to 1,146 lots.

However, the uplift was likely influenced by May containing five trading weekends, along with seasonal factors that suppressed activity in the previous month. While property markets also contended with negative sentiment following taxation changes affecting property investment in FY26/27 Federal Budget, the impact was largely confined to established dwellings, with incentives for investment in new dwellings remaining unchanged.

Share of sales jumps in the Western corridor, declines in the South East.
The Northern corridor held its position as the market’s most active, accounting for 27% of lot sales on the back of a 17% monthly lift. The Western corridor was the standout performer for the month, jumping 40% from a long term low* to reclaim a 26% share of total sales. The South East corridor bucked the trend, recording a sales decline that pulled its share back to 20%.

Regional corridors were more subdued, with proportions holding steady month on month. Geelong remained the strongest at 12% of total sales, ahead of Ballarat at 6%.

*Outside of the December-January period.