End of housing grant will hurt homebuyers and builders

The State Government’s decision not to extend the current Housing Construction Grant into next year will hurt South Australian homebuyers and the local property industry, according to the state’s peak representative body for urban development.

The Urban Development Institute of Australia (SA) says the Housing Construction Grant – which provides cash payments of $8,500 to South Australians building new homes – should be continued past the December 31 cut-off rather than be terminated.

“The UDIA is disappointed that the grant will no longer be available to people building a new home in South Australia,” said Terry Walsh, UDIA (SA) Executive Director.

“The property industry in SA is still only in the early stages of recovery with the rate of new home approvals continuing to disappoint, so we think removing the grant is premature and may serve to dampen consumer confidence even further.

“During a critical time for the local property industry, the Housing Construction Grant has been a fantastic incentive that’s had a positive effect on new homebuyers, including many young people entering the market for the first time. We think removing the grant, particularly in light of relatively weak market conditions, will have the opposite effect and prove detrimental to new homebuyers.

“And if buyer activity slows, so too will the broader property development and construction industry, which provides tens of thousands of jobs for people across the state.”

The Housing Construction Grant was established by the State Government last October to provide cash payments of $8,500 to people building new homes with a market value up to $400,000, with smaller grants available for properties valued up to $450,000.

Established in 1971, the UDIA (SA) represents the interests of the development industry in South Australia in collaboration with all levels of government. It seeks to represent all sections of the urban development sector, including developers, councils and service providers such as engineers, planners and surveyors. As the fifth largest contributor to output in SA, the property development industry employs 56,000 people or 7% of the state’s total workforce, and accounts for almost $9 billion or 12% of Gross State Product.

FURTHER INFORMATION:  Please contact
UDIA (SA) Executive Director Terry Walsh on 0408 704 790