The end of the Morrison Government’s HomeBuilder grant on 14 April 2021 has failed to dampen new home sales, which “jumped 15.3 per cent to be 11.2 per cent higher in the quarter than the same time in 2019”, according to HIA Economist Angela Lillicrap:
“The strength of new home sales nationally suggests that there will be a significant number of new homes entering the pipeline post HomeBuilder which will ensure activity remains elevated into 2022,” added Ms Lillicrap.
There are 944 words left in this subscriber-only article.
Start your free 14-day trial today!
“Sales in the June 2021 quarter are below the levels experienced during the nine months of the HomeBuilder program but are stronger than the same quarter in 2019. Sales are also on par with the June 2018 quarter, which was a strong year for detached home building.
“Record low interest rates and confidence in the housing market are driving demand from owner occupiers.
Separate data from the ABS shows that dwelling approvals surged 53% year-on-year, led by detached houses:
Meanwhile, construction finance commitments have fallen 31% from their February 2021 peak, but remained 90% higher year-on-year in May:
Based on the above data, dwelling construction will remain strong for the remainder of this year given approvals lead commencements and completions.
The big slowdown will come in 2022 as the pull forward of demand from HomeBuilder finally ends.
- JobKeeper rorters ignored as unemployed forced to repay welfare - July 23, 2021
- Job postings unaffected by lockdowns - July 23, 2021
- Positive signs as UK COVID cases fall after ‘Freedom Day’ - July 23, 2021