The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FIRST RELEASE TICKETS ON SALE FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FIRST TICKETS ON SALE FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
SEE DETAILSDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Partner Lab
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ResidentialRenee McKeownWed 20 Jan 21

HomeBuilder Take Up Doubles Expectations

TUD+ MEMBER CONTENT
0306ebde-b845-45d9-9089-80cbbe273969
SHARE
26
print
Print

The HomeBuilder grant scheme is twice as popular as anticipated and is set to cost the government an expected $2 billion.

The original estimate for the scheme was $680 million for 27,000 grants when the prime minister first announced the initiative in June.

The latest figures released from the federal government shows nearly 75,000 households have taken up the offer for the $25,000 grant before 31 December.

Although the cash grant wound down to $15,000, the grant will continue to 31 March with the construction commencement date extended to six months, continuing to boost the residential sector.

HomeBuilder applications

New BuildRebuildTotal
NSW8,7144,97313,687
Vic17,3824,21321,595
Qld13,5073,10616,613
WA11,14178311,924
SA5,9491,4797,428
Tas1,5212911,812
ACT1,3715201,891
NT17815193
Total59,76315,38075,143

^Source: Australian Government, The Treasury to Dec 31, 2020

The treasury estimates HomeBuilder will now support up to $18 billion residential projects supporting construction into 2022.

Minister for housing Michael Sukkar said they were pleasantly surprised with the results of the demand driven program .

“HomeBuilder was designed immediately to inject confidence and encourage buyers back into the market to offset the devastating effects of the pandemic on the residential construction industry,” Sukkar said.

“On all counts HomeBuilder has more than achieved this objective, and it has kept hundreds of thousands of tradies in work who would have otherwise been facing the unemployment queue.

“This is a phenomenal outcome for our tradies and for our economy at a time it needs it most.”

However the grant scheme and low interest rates have brought forward buyers leading the Reserve Bank analysts to predict home prices could increase by 30 percent.

New home sales nearly double

New home sales have jumped to the highest point in 20 years according to the latest HIA report.

Across the country, new home sales in the December quarter were higher in all regions when compared with the same period in 2019.

South Australia was up 188.3 per cent, Victoria 103.1 per cent, Queensland 99.9 per cent, Western Australia 99.2 per cent and New South Wales up 61.7 per cent.

^Source: HIA

HIA economist Angela Lillicrap said this is the second strongest month of New Home Sales in the 20 year history of the survey, only exceeded by March 2001.

“The extension of the timeframe to commence building from three months to six, which was announced in November, played a significant role in December’s results,” Lillicrap said.

“New home sales in 2020 increased by 32.5 per cent compared to 2019.

“This is an exceptional result given the nature of the pandemic and the effect that it has had on the broader economy.”

So far global house prices have defied the pandemic however the likelihood of a house price bubble and its risk of bursting is yet to be seen.

ResidentialAustraliaConstructionPolicyConstructionSector
AUTHOR
Renee McKeown
More articles by this author
ADVERTISEMENT
TOP STORIES
MODEL founder Rory Hunter HERO
Exclusive

‘It’s Massive’: On Mission to Prove BtR Green Equals Gold

Leon Della Bosca
8 Min
Potts Point Coliving EDM
Exclusive

Co-Living Shrugs Off Stigma as Overseas Money Moves In

Clare Burnett
6 Min
Bankstown cbd in Sydney NSW EDM
Exclusive

Breaking Delivery Crisis Chokehold on NSW’s Biggest Housing Market

Vanessa Croll
7 Min
Healthscope Hospital EDM
Exclusive

‘Once-in-a-Decade’ Opportunities Rise in Wake of Healthscope Collapse

Clare Burnett
7 Min
Exclusive

Parking Upsize Threatens Fatal Blow to Project Feasibility

Phil Bartsch
6 Min
View All >
Castle Hill Showgrounds Pavilion rendering HERO
Development

Deicorp Breaks Ground on $1bn Showground Pavilions

Leon Della Bosca
Sydney LEP 2012 changes Potts Point EDM.
Policy

Less for More: Sydney Locks in Apartment Retention Rule

Vanessa Croll
Hayball's rendering of SMA Projects' short-stay apartment project at 134-138 Moray Street in South Melbourne.
Hotel

SMA Projects Files South Melbourne Hotel Plans

Marisa Wikramanayake
A decade after it acquired it, SMA Projects has turned its back on office plans for a new approach to its South Melbourn…
LATEST
Castle Hill Showgrounds Pavilion rendering HERO
Development

Deicorp Breaks Ground on $1bn Showground Pavilions

Leon Della Bosca
3 Min
Sydney LEP 2012 changes Potts Point EDM.
Policy

Less for More: Sydney Locks in Apartment Retention Rule

Vanessa Croll
4 Min
Hayball's rendering of SMA Projects' short-stay apartment project at 134-138 Moray Street in South Melbourne.
Hotel

SMA Projects Files South Melbourne Hotel Plans

Marisa Wikramanayake
2 Min
MODEL founder Rory Hunter HERO
Exclusive

‘It’s Massive’: On Mission to Prove BtR Green Equals Gold

Leon Della Bosca
8 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/homebuilder-doubles-expectations-costs-new-builds