Despite the high level of taxes on new housing, buyers are spending less on new homes than on existing homes.

Homebuyers in the ACT, Tasmania, South Australia, Western Australia and New South Wales are taking out smaller mortgages for newly built homes compared to existing properties. In the ACT, the average loan for a new home is 20% lower than for an established property ($525,991 versus $658,491).

The difference in Tasmania is 12.5%,  while in South Australia, Western Australia and New South Wales, the gap is 6.6%, 3.8% and 0.3% respectively. Money.com.au Property Expert Mansour Soltani says part of the reason is that people are building new homes in areas where land is more affordable, such as regional markets. “In contrast, established properties in high-demand metro areas come with premium price tags, pushing up loan sizes,” he says. New build loans are higher in the Northern Territory (6.4%), Queensland (3.6%) and Victoria (1.8%).