‘It’s an extra kick’: New-home inquiries spike as buyers jump on HomeBuilder grant

June 17, 2020English

‘It’s an extra kick’: New-home inquiries spike as buyers jump on HomeBuilder grant

June 17, 2020
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Developers and builders have fielded a wave of renewed interest from home buyers motivated by the federal government’s HomeBuilder scheme.

The $25,000 grants come as a welcome shot to the arm for the new homes industry, which was suffering a dramatic drop in sales during the COVID-19 pandemic.

The grant applies to new homes of up to $750,000 with contracts signed between June 4 and December 31 this year, where construction is due to commence within three months of the contract date. Buyers must also meet income tests.

The scheme comes in sync with the first signs of a rebound for the industry, says Patrick Cooney, sales and marketing director at Melbourne developer Milieu.

“With HomeBuilder and improved market sentiment, a combination of both really, we’ve had a lot more people inquiring at the just under $750,000 mark,” he said.

Cooney said inquiries about the company’s developments had quadrupled in the past week.

Artist's impression of Pace Sunshine North development, Melbourne
An artist’s impression of Pace at Sunshine North, a new development in Melbourne. Photo: Supplied

“It’s really given people an incentive to go out and purchase,” he said. “It’s a huge amount of money – if you’re looking at a $500,000 apartment, it’s 5 per cent of the purchase price.

“It’s an extra kick that has really given people an earlier avenue to be able to make a purchase, rather than having to wait another year to save that 5 per cent.”