Residential building surge in February could pump $16m into Territory economy data reveals

A SURGE of new home construction projects in February alone could pump millions into the Territory’s economy, data has revealed

A SURGE of new home construction projects in February alone could pump $16m into the Territory’s economy, data has revealed.

It comes amid skyrocketing residential home prices in Darwin, with the capital city’s 16.3 per cent annual growth outranking its counterparts across the country.

New government data has revealed 40 BuildBonus scheme applications, a government grant worth up to $12,000 to Territorians looking to buy or build a new home, were paid out in February.

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It’s estimated that those new home projects will inject $16m into the economy.

A total of 20 federal government HomeBuilder applications, which provide grants of $15,000, were also paid out in February.

A further 68 applications have been approved pending the start of construction and another 104 are being processed.

The HomeBuilder and BuildBonus schemes will end on March 31.

Master Builders NT chief executive Dave Malone said February was “another stellar month” for the residential market due to schemes like BuildBonus and HomeBuilder, alongside historically low interest rates.

Master Builders NT chief executive Dave Malone.

“A drive through our new subdivisions would show just how much things are changing, as slabs go down and homes rise up out of the ground,” he said.

“The run of very solid performances which commenced back in October has put considerable demand into the local construction market which should carry through to the end of the year.”

A total of 68 fidelity fund certificates, the NT’s answer to home warranty insurance, were issued in February compared to just 30 in February 2020.

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Chief Minister Michael Gunner said the benefits of the recent housing boom would have flow effects for the Territory.

“We are making the Territory the best place in the country to build a home and do business, and that is why we are cementing ourselves as Australia’s comeback capital.”