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After the property market has witnessed a lull in activity as a result of the COVID-19 outbreak, South Australia is expected to experience a “mini property boom”, aided by the federal and state government support for new homes.
The government’s support for new homes came in the form of the new federal HomeBuilder stimulus ($25,000), the state’s existing First Home Owner Grant ($15,000) and Starter Loan ($10,000). In some cases, this meant eligible applicants received up to $50,000 towards their new home build. The HomeBuilder scheme will run until 30 December 2020.
Since the announcement of the government support for home buyers, Land Services SA has seen a 30 per cent increase in the number of new land parcels issued from plans lodged for subdivision compared to this time last year.
Based on Land Services SA data, this rise in activity in creation of new land parcels has not occurred since 2010 or the post-GFC period.
Further, they have observed a 94 per cent increase in the purchase of the Property Interest Report (PIR) product for vacant blocks, which is the key lead indicator for a property sale.
“It appears that the government stimulus initiatives have contributed to a boom in subdivision of vacant land as customers take full advantage of the schemes on offer,” they said.
“The underlying benefits to the SA economy of the government’s stimulus package can’t be understated, as vacant land sales and housing growth provide employment and an enormous boost to economic growth.”
Land Services SA provides property data across South Australia based on information gathered through SA land registry and statutory valuations.
“These insights are especially vital during periods of uncertainty, with many home owners and investors keen to understand the impact COVID-19 will have, and is having, on South Australia’s property market,” they concluded.
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