Sales of new homes have risen significantly because of the Federal Government’s HomeBuilder stimulus package, according to Housing Industry Association analysis. The onset of the pandemic in March saw the new home sales market and consumer confidence fall drastically. But in the two months following the June announcement of the $668 million grants package, sales numbers rose 64% compared to the two months prior.
Chief Economist at the HIA, Tim Reardon, says the $25,000 grant to eligible new residential homes, together with the improving health conditions and easing of restrictions across most jurisdictions, caused confidence in the market to improve. WA is the biggest beneficiary of the grants program, supported by affordable housing and additional state government assistance. Its sales have risen 171% since the June announcement. South Australia was another strong performer through the period, recording a 142% increase, followed by Queensland (up 42%), Victoria (up 40%) and NSW (up 10%).