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Has the HomeBuilder stimulus package worked?

10 July 2020 Cameron Micallef
HomeBuilder stimulus package

Home builders are snapping up properties as the Morrison government’s controversial HomeBuilder scheme helps lift interest in the property market, latest stats have revealed.

According to research by the REA Group, buyer appetite for new homes is surging, with inquiry to developers jumping by 62.8 per cent in June. 

This spike followed on from a bullish 53.9 per cent increase in May.

The research suggests the announcement of HomeBuilder in early June has led to a further surge in the already increasing interest in new properties.

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“Not surprisingly, land estate inquiries have recorded the largest jump over the month, up by 93 per cent, followed by a 29.4 per cent increase in apartment leads and a much lower 4.3 per cent lift in inquiries for new retirement properties,” REA Group executive manager, economic research, Cameron Kusher said.

Over the past two months, inquiries for land estates have risen by 222.2 per cent while apartment inquiries are 79.1 per cent higher and retirement enquiries have increased by 107.1 per cent.

Nationally, last month saw a record number of developer inquiries.

The Northern Territory was the only state or territory in which inquiries fell last month (-21.2 per cent), while inquiries trebled in Tasmania (203.5 per cent), more than doubled in Western Australia (179 per cent) and almost doubled in Queensland (97.2 per cent) and South Australia (98.8 per cent).

Mr Kusher said the announcement of HomeBuilder could lead to a further surge in the already increasing interest in new properties.

“I expect to continue seeing high levels of inquiry to developers as buyers look to capitalise on government incentives and historic low borrowing costs that are currently available,” Mr Kusher said.

“It’s no surprise that land estate new development is benefiting from HomeBuilder; given the package is geared towards new builds, there are restrictions on construction time frames that inhibit apartment development, and the Australian dream is to own a house.”

Has the HomeBuilder stimulus package worked?
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