The Housing Industry Association (HIA) is among many in the industry to welcome the announcement by the federal government to introduce a time limited, targeted new HomeBuilder package.
HomeBuilder provides eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home. HomeBuilder is proposed to assist the residential construction market by encouraging the commencement of new home builds and renovations this year.
“The HomeBuilder package will support the delivery of tens of thousands of new home and renovation projects,” HIA managing director Graham Wolfe said.
HIA estimates it could generate more than $15 billion in national economic activity.
“Most importantly this incentive will support hundreds of thousands of jobs across Australia.
“The housing industry directly engages more than one million people – builders, trade contractors, designers, professional service providers and others.
“It provides jobs for many thousands more in the manufacturing and retail sectors, which supply the materials, products, white goods and furnishings that go into our homes.
“This incentive will help to address the projected decline in housing activity over the next 12 months.”
Local developer Villawood Properties also welcomed the $688 million HomeBuilder scheme.
Villawood executive director Rory Costelloe said that the developer had been finding a number of buyers had been holding back, waiting on rumours of an assistance package, so Villawood was was pleased it had been announced and looked forward to the extra demand it would create.
“This encourages jobs in the construction industry, which is the biggest employer in this state and the single biggest generator of tax revenue for the government.
“The challenge for the industry will be to provide enough titled stock to fit within the criteria of the grant.”
The HIA had predicted the supply of new houses could drop to as low as 111,000 in 2020/21, rather than the 171,000 original predicted in February this year.
“This incentive will ensure that the significant contraction in new home building activity in 2020/21 is not realised,” Mr Wolfe said.
“The package will see slabs poured in the second half of the year, meaning jobs are kept and houses built.
“Stimulating home building activity has been an effective recovery catalyst in past economic shocks.
“HIA is confident it can again support the national economy through this difficult period.
“The HomeBuilder incentive is the largest direct contribution to owner occupier housing construction that an Australian government has ever made.
“Today’s announcement reflects the importance of the home building industry and the role the industry
plays in generating jobs and economic activity.
“HIA acknowledges the support of the federal government in delivering this important stimulus package.”