An Extra $25,000 For Those Looking to Renovate or Build
The Government has rolled out a housing stimulus package aimed at revitalizing property market activity. The $700-million scheme, known as HomeBuilder, provides a $25,000 grant to eligible owner-occupiers substantially renovating or building a new home.
The HomeBuilder package has so far received a lot of traction, with a total of 11,367 applications received by the state and territory Revenue Offices. The Minister for Housing and Assistant Treasurer, Michael Sukkar, commented that “the figures show HomeBuilder is off to a much stronger start than forecasted…Every HomeBuilder application represents a signed contract, which means more work in the pipeline, keeping our tradies on site, on the tools and in a job.”
The ANZ/Property Council Survey found that the national confidence score increased by six-index points to 82 for the upcoming December 2020 quarter. Although still below the historical average of 123, these results mark a 14-index improvement from when the confidence levels dropped to their lowest in the survey’s history in the June 2020 quarter. The online survey of 857 respondents found that three-quarters of residential building developers said they expected the HomeBuilder scheme to have a positive impact for their business over the next quarter.
While property sentiment has remained weakened amid the Coronavirus pandemic, and the associated restrictions imposed by the governments, stimulus packages like HomeBuilder are ensuring an economic incline.
“While sentiment in the housing sector remains negative, it is clearly improving,” ANZ senior economist, Felicity Emmett said.
“The scheme, along with other state government initiatives, is clearly giving the housing construction sector a boost…While sentiment is very weak, government support has clearly helped to prevent the worst. HomeBuilder, JobKeeper and the raft of other government stimulus measures are helping underpin sentiment.”
Although there has been a lot of praises for the Governments efforts to revitalize the property market, there is still a long way to go before the property industry sentiment returns to the level it was prior to the pandemic. Chief executive of the Property Council of Australia, Ken Morrison, warns that “as household supports such as JobSeeker and JobKeeper are wound back over the next few months, all levels of government will need to step in with initiatives that will deliver fast and effective stimulus to build momentum for recovery.”