New home sales surge to a 6-year high as confidence builds

New home sales in South Australia have grown in the past three months to their highest level in 6 years, as local builders prepare for a further influx in demand as buyers take advantage of the Federal Government’s $25,000 HomeBuilder grant.

Data released today by the national Housing Industry Association, shows SA is now second only to Western Australia for its increasing new home sales – up 104.9 per cent in the three months to August, compared to the previous March ‘COVID-19’ quarter.

Nationally, new home sales were up 61.3 per cent during the same period.

In fact, it found “…there is the prospect that South Australia will see an increase in detached home starts in the March quarter of 2021 compared with 2020”.

Treasurer Rob Lucas welcomed the independent report’s findings, which showed buyer confidence returning after the lows of COVID-19.

“The Government recognises the critical importance of the local housing and construction sector as a significant employer of South Australians, both directly and indirectly, and today’s new home sales data paints a positive picture for the industry going forward,” said Mr Lucas.

“We know the Federal Government’s HomeBuilder scheme, which provides a $25,000 grant for eligible applicants toward their new home build in addition to the existing $15,000 State Government First Home Owner Grant incentive, has had a positive impact on buyer confidence.

“In addition, the State Government’s ‘Starter Loan’ Scheme, which provides interest-free loans of up to $10,000 for five years to help eligible borrowers cover upfront costs associated with buying or building a new home is already proving successful since its launch in September last year.

“Earlier this month we also announced a further $3 million expansion of the scheme, to include singles with a net household income of less than $65,000 (up from $52,000) and couples with a net household income of less than $90,000 (up from $60,000).

“Notwithstanding the impact of the March quarter, which resulted in an overall decline in sales over the past six months due to COVID-19, we are now seeing the green shoots of recovery as more buyers return to the market.

“This is positive news for local jobs and businesses.”

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