The McGowan Government’s Building Bonus, First Home Owner Grant (FHOG) and Keystart incentives are driving a surge in Western Australia’s property market and supporting thousands of jobs for Western Australians.
First home owners in particular are flocking to the property market to take advantage of the incentives, supporting more than 65,000 Western Australian jobs in the property and construction sectors.
Since the $20,000 Building Bonus grants were announced as part of the WA Recovery Plan, more than 2,400 applications have been received. Many more applications are expected in the coming months, with a pipeline of work expected to support industry activity into 2022.
The Building Bonus program has resulted in more than three times the number of land sales in the June to October period compared to the same period last year.
Land sales peaked to around 500 sales per week shortly after the announcement of the Building Bonus. Although sales have come off that peak, they remain elevated relative to 2019 levels. Peak sales were 10 times the average weekly land sales over 2019.
Building approvals increased by 43 per cent in September 2020, following a 34 per cent increase in August. By way of comparison, building approvals nationally increased by 15.4 per cent in September.
Compared to September 2019, building approvals in WA were 74 per cent higher in September 2020, which is the strongest outcome anywhere in Australia, and the fastest rate of growth since May 2013.
The significant increase in building activity has made it difficult for people to meet the Commonwealth’s restrictive three-month commencement period for the $25,000 HomeBuilder grant.
As a result, the Commissioner of State Revenue has used her discretionary power to extend the commencement period to six months from date of contract for all HomeBuilder applicants.
Loans for established homes have also increased in recent months. There were more than 2,700 home loans for established dwellings in September, the highest number in any month since March 2015.
The Building Bonus program has created a surge in demand for FHOG and Keystart.
FHOG applications in October were up 24.9 per cent to 1,338, the highest monthly level of applications for new dwellings since late 2009. Applications also rose by 35.9 per cent in annual average terms to October, the fastest rate of annual growth since January 2014.
Keystart loan applications have also grown by 49.1 per cent in the 12 months to October 2020, the fastest rate of annual growth since early 2014.
Applications for Keystart loans in October 2020 were nearly twice the average 2019 monthly level. Applications reached a multi-decade peak of 763 in July 2020.
As stated by Premier Mark McGowan:
“The housing and construction sectors are vital components of Western Australia’s economic recovery, and it’s great to see our incentives driving economic activity and supporting thousands of jobs.
“The Building Bonus in particular has created a surge of activity and the benefits are flowing through to WA workers on building sites across the State.
“We will continue to support these industries to ensure WA can recover, stronger than ever.”
As stated by Treasurer Ben Wyatt:
“The McGowan Government’s incentives for homebuyers and home builders are assisting thousands more Western Australians realise the dream of homeownership in WA.
“Our incentives are also helping protect the more than 65,000 workers in the property and residential construction sectors by driving demand and providing an ongoing pipeline of work.
“The latest figures for our Building Bonus and First Home Owner Grants and for Keystart loans demonstrate demand for building a home and buying an established home are at levels not seen in years.”
As stated by Housing Minister Peter Tinley:
“We have invested an unprecedented amount of money into WA’s social and affordable housing which has also provided much-needed support for jobs in our residential construction sector.
“Thanks to strong consultation between government, industry and the community sector we are creating safe, stable and sustainable homes for all Western Australians – especially for those who need it most.”
