Existing HomeBuilder applicants have been given another 12 months to begin construction as new homebuilding has reached its highest level in 21 years.
April 17, Finance Minister Josh Frydenberg and Housing Minister Michael Sukkar Announcement The HomeBuilder scheme construction start requirement has been extended from 6 months to 18 months. This means that the builder should start working by September 2022.
Introduced in June 2020 as part of the country’s economic recovery program, Home Builder provided up to $ 25,000 (US $ 19,500) in grants for new home construction and major renovations.
The government said more than 121,000 Australians applied for the grant. This will cost the government $ 2.5 billion ($ 1.95 billion) and is expected to generate a total of $ 30 billion in building activity.
The Association of Master Builders (MBA) has calculated building activity and contributed more than $ 100 billion ($ 78 billion) in economic activity.
“In fact, I think it contributes almost 5% to GDP growth in our economy,” said MBA CEO Denita Wawn. Told the media.. “This means pubs, cafes, restaurants, and all the jobs that flow into the economy, not just our industry.”
This extension was granted in response to unexpected delays in local and global supply chains caused by COVID-19 and recent natural disasters.
“Extension of construction start requirements smoothes HomeBuilder’s construction pipeline, supports the work of the construction department, and is out of control for existing applicants who have difficulty starting construction with new buildings or refurbishments. You will not be denied a Home Builder grant because of it, “Frydenberg said.
HomeBuilder grants are considered very successful by both the federal government and industry groups.
“Consumer confidence has risen to its highest level in 11 years,” said Frydenberg. “Therefore, this extension of the start date when the first slab can be laid is a very important step. It helps to secure a pipeline of economic activity.”
Graham Wolfe, managing director of the Housing Industry Association (HIA), said the announcement is great news for homebuyers who are concerned that they may abandon Home Builder grants due to unexpected delays. Said.
“Now we don’t lose HomeBuilder grants and we can rest assured that the industry can continue to work,” Wolfe said.
New home sales, an indicator of new home construction, increased 39% in the March 2021 quarter compared to the same period last year, according to a HIA report.
“Home Builder has pushed the demand for new homes ahead of schedule,” said HIA economist Angela Lillicrap. Said.. “The recent significant rise in home prices has also caused FOMO, or fear of oversight, of industry-supporting buyers.”
The Australian housing market is currently experiencing unusually high home prices across the country, partly because the market supply is not keeping up with current demand.
With the help of HomeBuilder grants, builders Quickly We will close the project to take advantage of the current booming market.