Govt cash sparks land sales boom
A combination of grants from State and Federal governments has resulted in a South West building boom with potential buyers rushing to secure land in sought-after areas.
Lots in Dunsborough, Yallingup, Abbey, Busselton and Vasse have sold out quickly with pre-sales the only opportunity for investors.
This comes as research from banking giant ING found 46 per cent of millennials thought COVID-19 had made home ownership more achievable and 32 per cent will buy a home within the next one or two years.
The Future Focus Home Ownership report found young people were choosing to live with parents, redirect travel budgets to home savings, and take on extra work to purchase their first home.
Some of the larger building companies, Ventura Homes and Dale Alcock, had sold more than 100 preparation of plans agreements in the past month alone.
Country Builders South West regional manager Carrie Anderson said the stimulus grants had resulted in a “buying frenzy”, with monthly sales up from 15 to 90 new homes. “Pre-stimulus was looking pretty bleak and we were concerned but we have gone from one extreme to the other and it’s a good problem to have,” she said.
“Developers are finding blocks in central Busselton they couldn’t sell for two years have been snapped up and clients are screaming for pre-sales that are selling out over the weekend they are released.”
She said a scarcity of land would soon confront the South West and Country builders were urging buyers to be patient.
This week, the Civil Contractors Federation WA called for a revision to the Government’s home-building incentive eligibility to avoid a “boom and bust”.
Civil Contractors Federation WA chief executive Andy Graham said the combined $45,000 State and Federal Government incentives had created a welcome boost for civil contractors but the sector held fears of a short burst of activity followed by a prolonged downturn.
Currently, first-homebuyers have until December 31 to sign a contract and until March 3, 2021, to have their slab down to be eligible for State and Federal grants.
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