What are the Extended dates and the effects of the HomeBuilder Program.
Homebuilder Timeframes Extended
The HomeBuilder program was designed to protect trade jobs and expand economic activity in the construction industry, in response to the downturn caused by the COVID-19 pandemic.
The government confirmed it has seen over 120,000 due to the massive response in the program and supply constraints the construction industry has seen delays. In response to these delays The Morrison Government announced on the 17th of April it is providing a second extension to eligible applications to commence construction by a further 12 months.
The Effects of the Homebuilder Program
DWELLING APPROVALS RECORD A STRONG RISE
The applications of over 120,000 is expected to support around $30 billion of residential construction projects. 80 percent of the applications are directed at new home construction. The program has exceeded more then four times what the Treasury had estimated at the Scheme’s Inception in June.
In February the industry saw a record high in approvals to build private dwellings causing low interest rates. The Australian Bureau of Statistics states “Since the introduction of the Homebuilder grant in June 2020, private house approvals have risen by almost 70 per cent.”
The ABS also stated “Approvals for private sector dwellings excluding houses (i.e. townhouses and apartments) rose by 45.3 per cent in seasonally adjusted terms, coming off a nine-year low in January.”
“Land sales and housing construction have effectively doubled during the past 12 months and the industry is working at maximum capacity.” UDIA National President Simon Basheer states.
Around 40% of HomeBuilder applications were first home buyers, the strongest share of new dwelling commencements since the Global Financial Crisis.
The program was created to boost the construction and housing industry to save it from a panademic related collapse. The program is now reported to be one of the main drivers of economic recovery. The HomeBuilder Program will unleash an unprecedented national surge in housing construction, with every state and territory booming above its previous peak simultaneously.
Find references or more information here:
Review the Factsheets and information on the Treasury, https://treasury.gov.au/coronavirus/homebuilder
Australian Bureau of Statistics, https://www.abs.gov.au/media-centre/media-releases/dwelling-approvals-record-strong-rise-february