South Australians rush to snare $25k HomeBuilder grants before New Year

Builders are hoping 2021 will see a year-long SA housing boom after a surprise surge of applications for HomeBuilder grants.

South Australia will have a bigger than expected housing boom in 2021 after a massive spike in people applying for the $25,000 HomeBuilder grants before the New Year.

In the final five days of December, a whopping 1791 applications were received in SA before the grant amount dropped to $15,000 on January 1.

That means SA has now received more than 7640 applications for the grants, including 6123 for new builds and 1519 for major renovations.

Demand for the grants in SA has been almost four times higher than the Federal Government expected when it launched the scheme last June.

Master Builders SA chief executive Will Frogley said the HomeBuilder program was likely to drive a housing boom in SA that would last throughout 2021.

Demand for the HomeBuilder grants in SA is almost four times higher than expected. Picture: iStock

He predicted Mount Barker, Angle Vale, the Adelaide Hills and Seaford would be some of the areas where the boom was focused.

“We’re looking at a very busy industry for the whole year but particularly over the next six months,” Mr Frogley said.

So far, 817 of the applications have had conditional approval and 524 have been paid.

Treasurer Rob Lucas said the scheme, launched last year to prevent a building industry slump during COVID-19, was “absolutely booming in South Australia” and was driving jobs growth.

“We know local builders and trades have been rushed off their feet, with this surge in activity expected to extend well into 2021,” Mr Lucas said.

“SA’s largest home builder, the Hickinbotham Group, for example, has employed an extra 85 staff to help meet the surge in demand from HomeBuilder applicants.”

Federal Housing Minister Michael Sukkar welcomed the spike as “very good news for SA tradies”, saying it was proof the scheme was protecting jobs by creating construction demand.

He said the government had decided to extend the HomeBuilder scheme until March 31 to maintain the momentum in Australia’s economic comeback.

The scheme was originally due to finish on December 31.