SA reveals own HomeBuilder-style stimulus
South Australia is looking to continue supporting the building of new homes, unveiling a new stimulus package for the state.
Initially unveiled last month, the South Australian Premier, Steven Marshall, has revealed that the scheme will create “a massive job-creating pipeline of work for South Australian home builders and their suppliers, including thousands of local tradies”.
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The new stimulus is comprised of approximately $48 million worth of new initiatives to support a transition out of the federally funded HomeBuilder pipeline – which is set to hit the state’s tradies from the second half of 2023.
At this point in time, Mr Marshall expects the measures will result in an extra 960 new dwelling commencements over the next five years.
It reportedly includes an expansion of HomeStart’s shared equity product so that it applies to new home construction – which is a shared equity product that helps boost a borrower’s borrowing power by up to 25 per cent.
HomeStart’s starter loan scheme will also be expanded by a further 1,000 loans – with 50 per cent of the extended program to be limited to new home construction.
It will also prop up the apartment building sector by underwriting a mix of affordable and market apartments in developments across the Adelaide CBD and inner urban fringe.
The government also aims to provide support for a new Build-to-Rent proposal in partnership with a community housing provider to deliver up to 180 social, affordable and market rental properties at Eastwood.
While the announcement of the stimulus was only made relatively recently, the Premier has outlined that provision for a stimulus package was made in the 2020-21 state budget, but further investment wasn’t required until now due to the booming housing construction market.
“Now is the time to get cracking as the heat from HomeBuilder is expected to come off around the second half of [2022] and we strive to keep our economy powering ahead,” he commented.
“South Australia’s housing construction industry is a vital sector that helps underpin the state’s strong, ongoing economic and jobs growth, and it’s important we do all we can to ensure our trades continue to thrive beyond the surge in activity we’ve seen throughout the pandemic.
“My government’s significant stimulus package secures a pipeline of work for thousands of local trades for years to come, through a range of initiatives that not only directly supports local construction, but also make it easier for South Australians to get their foot into the door of home ownership.”
Even with this announcement, further initiatives may still be considered “in due course”.
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