Powered by MOMENTUM MEDIA
the adviser logo
Compliance

SA unveils housing construction stimulus

by Sarah Simpkins6 minute read

The South Australian government has launched its Housing Construction Stimulus Package, with an aim to keep boosting residential building post-HomeBuilder.

The new stimulus package from South Australia will include $48 million in new initiatives, targeting the local construction industry and trades such as plumbers, electricians, carpenters and bricklayers, as the “heat of HomeBuilder” eases in the second half of the year.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

The stimulus is expected to result in 960 new dwellings over the next five years.

It includes:

Advertisement
Advertisement
  • An expansion of HomeStart’s shared equity product, an interest-free secondary loan, taken out with a primary HomeStart loan, which allows home buyers to borrow up to 25 per pent of the purchase price of a property (up to a maximum of $200,000). The product from the state-backed non-bank lender will now apply to new home construction, aided by $21 million from the stimulus package.
  • The state government will allocate $20 million towards underwriting a mix of apartments within developments in the Adelaide CBD and inner suburbs.
  • The HomeStarter Starter Loan scheme, an interest-free secondary loan that grants home buyers up to $10,000 to help cover the upfront costs of buying or building property for up to five years, has been expanded with 1,000 more loans available. Half of the additional loans will be limited to new home construction.
  • At least $10 million has been designated to backing a build-to-rent proposal, in partnership with a community housing provider to deliver up to 180 social, affordable and market rental properties in Eastwood, an inner-southern suburb of Adelaide. The $10 million allocation includes a $9 million land contribution from the SA Housing Authority.

Previously, around $4 million had been committed for a stimulus package in the 2020-21 state budget.

But South Australia Premier Steven Marshall commented further investment was now required amid a booming housing market, resulting from the federal government’s HomeBuilder grant.

“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,” Mr Marshall said.

“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.”

He added the measure would also make “it easier for South Australians to get their foot into the door of home ownership.”

Further, the Premier hinted that further initiatives may be considered in due course.

Michelle Lensink, the Minister for Human Services, stated the build-to-rent initiative would provide a major injection for aspiring home buyers and the construction industry.

The measure is the state’s first build-to-rent initiative, which Ms Lensink commented will deliver “much-needed affordable housing close to the city”.

“The Eastwood project alone will inject up to $61 million during construction into our economy and support 400 jobs post COVID-19 pandemic,” she said.

[Related: Rise in Perth house prices tipped for 2022]

SA unveils housing construction stimulus
aerial suburban street ta
TheAdviser logo
aerial suburban street ta

Sarah Simpkins

Sarah Simpkins

AUTHOR

Sarah Simpkins is the news editor across Mortgage Business and The Adviser.

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

Boomer home loans

New non-bank lender enters administration

Specialist lender Boomer Home Loans, named in reference to its target age demographic (Baby Boomers; those born in...

READ MORE
royden dvaz assetline capital ta fh2e1i

New national head of sales recruited at Assetline Capital

Royden D'Vaz, formerly head of distribution with the non-bank mortgage lender MKM, has been recruited as Assetline...

READ MORE
john maxwell oscar zhuo ta sthnmq

Uptick Marketing launches

Uptick Marketing (Uptick) aims to work in partnership with brokers to assist the third-party channel in “closing...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more