$25k HomeBuilder grant to trigger thousands of new homes to be built this year

The $25k HomeBuilder grant has seen new homes and renos soar across SA – but it’s about to be substantially reduced.

Almost 6000 applications have been made in South Australia for the HomeBuilder grant to construct or substantially renovate a house, sparking an industry boom set to carry well into the new year.

Treasury figures show there have been 5851 applications for the $25,000 HomeBuilder grant in SA, spanning postcodes across the state that indicate a mix of infill and greenfields projects.

Of the applications, 461 have been paid and another 757 have received conditional approval. With the Commonwealth subsidy dropping down to $15,000 from January 1, prospective applicants are urged to get in quick.

Master Builders Association SA chief Will Frogley told the Sunday Mail that despite the coronavirus taking a wrecking ball to the broader economy, new forecasts showed the appetite for homes had grown.

Carpenter Joe Love, who works with Hickinbotham, has barely had a day off in months because of demand. Picture: Dean Martin

“There is now far more demand for space, and working from home has been normalised in many workplaces so the need to be close to the CBD has been greatly reduced,” Mr Frogley said.

“I expect areas like Victor Harbor, Mount Barker and Gawler to continue to be in high demand.”

Mr Frogley said total builds were forecast to be slightly down due to a large drop in apartments.

The industry was forecasting a 9.4 per cent growth in detached homes in the 2020-21 financial year, with 8489 new homes expected to be built.

Mr Frogley and Treasurer Rob Lucas both attributed the growth to the HomeBuilder scheme. They said it helped add 4000 jobs to the sector this financial year, meaning there were now more than 71,000 South Australians directly employed in building and construction.

“We have added more than 4000 jobs already this financial year,” Mr Lucas said.

Treasury figures show the most applications, 276, have come from postcode 5251, which includes Mount Barker – one of South Australia’s fastest-growing regions.

South Australians wanting to build their first home can get $25,000 from the Commonwealth and a further $15,000 from the state until Thursday.

“If people are hedging as to whether they will go down this path or not, now is the time,” Mr Lucas said.

SA’s largest home builder, the Hickinbotham Group, has employed about 85 additional staff to help meet the surge in demand from HomeBuilder applicants.

Carpenter Joe Love, 25, of Plympton is one of the new subcontractors who have been helping to keep up with demand.

“I have struggled to get a day off,” he said. “I have been working six days a week for about five months.”

Of the 5851 applications for the grant in SA, 4034 are for new builds, 834 are off-the-plan and 983 are for substantial renovations.

The numbers far exceed the 2000 applications the Federal Government expected the grant to attract when it was launched in June.