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LJ Hooker Broadbeach has recorded a $17 million sales surge in recent weeks off the back of the federal government’s HomeBuilder grant.
The team has confirmed almost 80 per cent of sales, by volume, have been off-the-plan or newly finished residences. The influx of activity has been spurred by the government’s recently introduced HomeBuilder grant, with upgraders and downsizers “underpinning the Gold Coast’s new apartment market”.
Commenting on the success, Mathew Tiller, LJ Hooker’s head of research, said a combination of pent-up demand due to market uncertainty from March to May, record-low interest rates, and federal and state government stimulus measures has seen off-the-plan sales surge over the past two months.
“If a savvy first home buyer combines these two grants, it provides a significant incentive to get into the market,” Mr Tiller said.
“Traditionally, it’s investors which have been the main driver of off-the-plan purchases; however, it’s now not the case.
“With investors excluded from most government stimulus measures, it’s young couples looking to upgrade, retirees looking to downsize and first home buyers driving this sales surge.
“Record-low interest rates have also played a big part in lifting demand, with mortgage repayments, in some parts of the country, now being on par with rental payments.”
Mr Tiller added: “The federal government’s HomeBuilder package has reportedly had very high take-up, as evidenced on the Gold Coast, since it was launched in June.
“This measure has been amplified by the introduction of state governments’ stimulus package, such as waiving stamp duty for first home buyers or additional incentives to build a new home or purchase off the plan.”
ABOUT THE AUTHOR
Emma Ryan
Emma Ryan is the deputy head of editorial at Momentum Media.
Emma has worked for Momentum Media since 2015, and has since been responsible for breaking some of the biggest stories in corporate Australia, including across the legal, mortgages, real estate and wealth industries. In addition, Emma has launched several additional sub-brands and events, driven by a passion to deliver quality and timely content to audiences through multiple platforms.
Email Emma on: Emma.Ryan@momentummedia.
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