Source: Australia Government Ministerial Statements
Today’s ANZ/Property Council Survey for the December 2020 quarter shows the renewed confidence in Australia’s property industry is being driven by successful stimulus measures that are supporting our vital residential construction industry.
The Survey found that 75 per cent of residential building developers said they expected the Morrison Government’s HomeBuilder would have a positive impact on their business over the next quarter.
Property Council of Australia Chief Executive Ken Morrison said HomeBuilder has been a catalyst for driving sentiment in residential development;
“As the scheme has become available in all states and territories we have seen a big lift in sentiment among those in residential development.”
“HomeBuilder is the pop star of government stimulus measures released so far – highly effective, immediate and good value for money.”
ANZ Senior Economist Felicity Emmett said the Morrison Government’s COVID-19 economic stimulus has helped the sector navigate the worst of the pandemic;
“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 to underpin sentiment.”
As at 9 October 2020, state and territory Revenue Offices have received 11,367 HomeBuilder grant applications.
*Note: WA state revenue office currently only accepts applications once first construction milestone is achieved: for new build – when foundations have been laid – and off-the-plan – when title is issued to applicant. All other states and territories accept applications when sales and/or building contract is signed.
The figures show HomeBuilder is off to a much stronger start than forecast. Given the construction industry’s long project lead times this level of applications was not expected until November.
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.
These applications will be progressively paid when construction milestones are met. This practice is in line with state and territory based home buying programmes.
Today’s ANZ/Property Council Survey adds to the growing number of leading indicators that show that HomeBuilder is delivering the support the residential construction industry needs. Recent data shows;
- The Housing Industry Association New Home Sales data for September 2020 shows in the four months since HomeBuilder was announced, new home sales have risen 49.8 per cent compared to the four months to June 2020. The data also shows sales have been higher in each month since HomeBuilder was announced than any month in the past two years.
- ABS lending indicators show the number of loans for the construction of new dwellings rose to its highest level in over a decade, up by 22.9 per cent for August 2020 and 34 per cent through the year.
- HomeBuilder has seen first home buyers flood into the housing market. First home buyer loans rose dramatically in August to be 17.7 per cent higher for the month, up 37.3 per cent through the year – the highest level since October 2009.
- ABS Building Approvals data for August 2020 shows private sector house approvals are at their highest level since February 2019, with over 9,000 approvals recorded.
Across the board the construction industry is saying that HomeBuilder is delivering for Australia’s tradies and home buyers, which is driving stimulus in the economy at a time its needed most.
The Morrison Government is committed to doing all we can to help Australians get into a home of their own as part of our Economic Recovery Plan for Australia.