Powered by MOMENTUM MEDIA
subscribe to our newsletter

Home sales spike points to HomeBuilder boost: HIA

A sharp increase in new home sales has been attributed to a bump in sentiment from the federal government’s HomeBuilder scheme.

According to the Housing Industry Association’s (HIA) latest survey of the largest volume home builders in Australia’s five largest states, new home sales (contract to build) increased 61.3 per cent quarter-on-quarter in the three months to August 2020.

On a month-on-month basis, Queensland recorded the sharpest increase in hew home sales in August (19.1 per cent), followed by NSW (11.7 per cent), Western Australia (11.4 per cent) and South Australia (7.4 per cent).

Victoria was the only state to record a decline (14.4 per cent) due to the reintroduction of strict lockdown measures.

HIA chief economist Time Reardon attributed the recovery in home sales to incentives provided by the federal government’s $688-million HomeBuilder scheme.

Advertisement
Advertisement

Mr Reardon claimed that the bump in new home sales helped prevent a potential contraction in construction activity over the December quarter.  

“Without intervention, a significant contraction of work on the ground would have occurred in the second half of 2020, which meant up to half a million jobs were at risk,” he said.

Mr Reardon added that if the momentum from HomeBuilder is maintained, “more slabs will be poured before the end of the year”, creating “significant employment opportunities across the economy”.

Minister for Housing Michael Sukkar also lauded the contribution of the HomeBuilder scheme, stating: "These results again confirm that by giving Australians the confidence and support to enter the new home market, or make it more affordable to add to their existing home, HomeBuilder is protecting and creating more jobs across the construction industry at a time when the economy needs it most."

He added: “HomeBuilder has helped turn around an industry impacted heavily by the COVID-19 pandemic, described by Master Builders Australia CEO Denita Wawn in May as an ‘industry facing a valley of death.

PROMOTED CONTENT


“Industry experts have consistently said that HomeBuilder will unlock between $10 billion and $15 billion of investment in the residential construction industry as we move through the COVID-19 pandemic.

“The Morrison government is committed to delivering practical and successful measures to support our vital construction sector, which employs over 1 million Australians.”

[Related: Investors undeterred by property price projections]

Home sales spike points to HomeBuilder boost: HIA
Home sales spike points to HomeBuilder boost: HIA
mortgagebusiness

Latest News

The chief of Australia’s largest bank has said lenders should act pre-emptively and shift their floor rates for mortgage serviceability am...

Total household wealth reached a high of $13.4 trillion in the June quarter, primarily due to rising property prices, according to the Aust...

The property exchange settlement platform has been granted approval to establish an Electronic Lodgement Network in the ACT.  ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.