CoreLogic’s head of research, Eliza Owen, warns that the Morrison Government’s HomeBuilder subsidy for new home sales and renovations could bring forward demand, resulting in a possible construction bust in 2021 once the stimulus ends:
- The scheme grants $25,000 dollars for new home builds and renovations where:
- The recipient is an owner occupier;
- The recipient earns no more than $125,000 per annum as a single applicant or $200,000 for a couple;
- The contract is signed between June 4 and December 31; and
- Construction commences within 3 months of the contract date.
For renovations, the existing property value must be no more than $1.5 million, and the renovation must be worth between $150,000 and $750,000. For new builds, the house and land value must not exceed $750,000.
