HomeBuilder: NSW could be hit by tradie and building supplies shortage

Parts of NSW could be hit with a building supplies and tradie shortfall due to government grants. SEE WHICH SUBURBS COULD BE AFFECTED.

Parts of New South Wales could be hit with a building supplies and tradie shortage as the Federal Government’s HomeBuilder stimulus scheme dramatically exceeds expectations.

Sydney’s outer west has emerged as the state’s building hotspot with the 2765 postcode covering Berkshire Park through to Riverstone the leading location in the state, taking in 660 applications for the Federal Government grant.

NSW accounts for 15,670 applications, more than 18 per cent, for the scheme.

However industry experts have warned delays to vital materials being shipped from overseas could combine with a tradie shortage to cost some applicants the government funds they were relying on and impact upon the building industry in general.

The HomeBuilder scheme has been very successful.

The Federal Government is bracing to shell out more than $2bn in HomeBuilder grants with numbers potentially set to top 100,000 by the end of March, when applications for the scheme are closed.

At its launch in June last year the government had anticipated 27,000 Australian households would access a grant, and budgeted the uncapped program at about $680m.

Figures released exclusively to News Corp reveal 88,264 applications were made nationally by February 26, this would account for more than $2.075bn in grants if all successful.

Those who applied for a grant last year will receive $25,000, while those who applied this year will get $15,000 — provided they meet strict criteria relating to income, the value of works completed and commence construction within six months of signing a building contract.

However volume home builder Burbank Group has warned delays to steel, stone and tiles being shipped from overseas could combine with a tradie shortage to affect the scheme.

Managing director Jarrod Sanfilippo said extending the construction window would address the issue, without increasing applications.

There could be a shortage in building supplies.

“It would just ensure that everyone who signed up for the grant receives it,” Mr Sanfilippo said.

Federal Housing Minister Michael Sukkar said the government expected application numbers to rise, and noted the government “will continue to work with the sector to maximise the economic impact of this highly effective program”.

“We look forward to building upon the more than 88,000 applications already received, which means more work for our tradies,” Mr Sukkar said.

Housing Industry Association chief economist Tim Reardon said there would be a surge in applications late this month as builders and homebuyers had delayed signing contracts to give themselves to the end of September to commence construction.

“I would imagine by the end of March it will have exceeded 100,000 applications,” Mr Reardon said.

Melbourne and Sydney would see the largest uptick.

A similar late surge occurred in December, before the $25,000 grant was swapped for a $15,000 one on January 1 this year.

There could be a tradie shortage too.

State governments have also revealed the HomeBuilder hot spots where tradies and building materials will be most in demand.

Victoria’s Wyndham municipality has emerged as the national HomeBuilder hotspot having already received 2138 applications for the building grant — at least 1400 of these are in the Tarneit and Hoppers Crossing postcode area.

In Western Australia the Baldavis region has notched 407 applications in latest figures.

In South Australia, the Mount Barker and Wistow area, under postcode 5251, had 391 applications in latest figures.

In Tasmania the Launceston area has 390 applications, outpacing Hobart.

Queensland’s Treasury declined to provide data.

If applications top 100,000 it could add a further 25,000 payments of $15,000 to the federal credit card, about $375m, though at present the figure is $196.8m.

HomeBuilder Applications to February 26

Victoria – 25,433

Queensland -19,496

NSW – 15,670

WA – 13,681

SA – 9,205

Tasmania – 2,636

ACT – 2,173

NT – 330

Total – 88,264

Source: Department of Treasury

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Originally published as HomeBuilder: NSW could be hit by tradie and building supplies shortage