HomeBuilder – Making A Positive Impact
HomeBuilder has had a significant positive impact on homebuilding activity in Victoria and it is likely to keep many HIA members busy at least in the first half of the year.
Victoria had more HomeBuilder applications than any other state by the end of 2020 with 21,595 out of 75,143 nationally. This resulted in elevated new home sales levels in the second half of 2020, especially in December, marking the end of the first phase of HomeBuilder.
“Victoria had more HomeBuilder applications than any other state by the end of 2020 with 21,595 out of 75,143 nationally.”
With HIA forecasts anticipating that more than 42,000 detached homes will commence construction in Victoria this financial year, it is shaping up to be one of the strongest years on record. Yet, there is still uncertainty around availability of trades and other resources – particularly in the second half of the year.
With the significant upturn in activity combined with tight commencement and delivery timeframes, HIA predicts that material and labour shortages and price increases will follow – all producing challenges for home builders. Careful planning, flexibility and contingencies are the best safeguards.
“HIA predicts that material and labour shortages and price increases will follow.”
HIA continues to lobby the Federal Government to extend commencement timeframes for HomeBuilder to allow for a more orderly roll-out of the construction work that is anticipated in the first half of 2021. We will provide updates as they become available.
The recently released HIA’s New Home Sales report shows the following trends in Victoria:
- New home sales in Victoria have bounced back in February. They are up by almost half following the fall in January after the end of the first phase of HomeBuilder
- Compared to the same time last year, Victoria is performing better than the national average and remains above pre-COVID levels
- The closure of the second phase of HomeBuilder in March is also looking like one of the strongest months in the 20-year history of this HIA survey
Beyond that, we’ll have to wait a few months to see where the market stabilises post-HomeBuilder but the volume of work entering the pipeline is extremely high.
In addition, HIA is closely monitoring industry conditions and providing regular feedback to the Victorian Government on activity.
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