Why More Buyers Are Choosing New Builds (And Why It Might Be Your Smartest Move Yet)

With Melbourne’s established property prices doing their best impression of a helium balloon, more Aussie buyers are changing tactics—and looking to build instead of buy. And honestly? It’s not hard to see why. Fresh data from the Housing Industry Association (HIA) shows new home sales jumping 25.9% in September, with a 4% lift over the quarter. That’s not just a trend—that’s a surge. According to HIA chief economist Tim Reardon, the perfect storm of lower interest rates, government incentives, and rising established-home prices has made new builds surprisingly affordable. In many pockets of Australia (and especially around Melbourne’s growing suburbs), building can now deliver more value for money than buying an existing home. But—because there’s always a “but”—financing a new build is a different beast. Progress payments, council timelines, construction blowouts, builder delays, and loan approvals all require a bit more planning and patience. Building can absolutely offer long-term value and access to incentives… but it can also ambush your cash flow if you’re not ready for it. So, before you’re deep in display-home brochures, comparing stone benchtops with the intensity of a MasterChef judge, let’s talk strategy. Five Tips for Financing a New Home Build (Without Losing Your Marbles) 1. Set a clear budget—with a buffer Building can come with surprises (and not the fun kind). Add a 10–15% buffer for unexpected costs so you’re covered if prices shift or materials skyrocket. 2. Get pre-approval early This is your financial green light. It gives you confidence, helps your builder quote accurately, and makes the whole process smoother. 3. Understand how construction loans work Unlike buying an established home, construction loans are released in stages—slab, frame, lock-up, fit-out, and completion. Understanding when payments occur will help you stay ahead of the game. 4. Plan for cash flow You might be paying rent and a mortgage during the build. Or living with the in-laws. Neither is ideal unless you enjoy shared bathrooms. Planning ahead makes all the difference. 5. Communicate early and often If costs, timelines, or plans change, give your lender a quick heads-up. It keeps your build moving and avoids delays at progress-payment stages. Thinking About Building in Melbourne? Let’s Talk. Whether you’re eyeing off a block in a new estate, planning a knock-down rebuild, or just curious about whether a new build is actually more affordable for you, chatting to a local Melbourne mortgage broker (hello 👋) is a great place to start. Before you start comparing floor plans and arguing about pendant lights, let’s map out your finance options and make sure your build goes as smoothly as possible. Ready to explore your building finance options? Let’s chat.