Federal budget 2020: Developers welcome support for sector

Property groups have welcomed the boost to the home and building markets from the federal budget and are pushing for further reforms.

Property groups have welcomed the boost to the home and building markets from the federal budget and are pushing for further reforms.

Stockland chief executive Mark Steinert dubbed the budget “one of the most important fiscal statements in a generation”, applauding the efforts to support the economy through the “challenging period”.

“With much of the long-term pain from the COVID-19 pandemic and economic crisis still to come, we’re pleased to see a focus on job retention and creation,” he said.

The Stockland boss called out the $1.9bn manufacturing strategy and $1.2bn apprentice wage subsidy for providing a backbone for recovery, creating thousands of new jobs through a pivot into new industries and technologies.

“We also strongly support the new business investment allowance and the bring-forward of Stage 2 tax concessions, which will reduce cost of living pressures for people, and support businesses and local economies with increased consumer spending and enhanced business investment,” Mr Steinert said.

“Infrastructure and housing remain some of the most effective ways to drive economic growth and unlock private investment so it’s pleasing to see more than $10bn in new transport infrastructure funding announced, particularly in growing communities,” he said.

With migration and population growth at historic lows, Mr Steinert also welcomed the extension to the First Home Loan Deposit Scheme.

Property Council of Australia CEO Ken Morrison said the budget papers exposed population as a key risk to recovery.

“Growing our population again will be essential to realising the budget’s forecasts, and requires Australia to safely and methodically begin to reopen our borders,” Mr Morrison said.

Ray White managing director Dan White said the measures aimed at helping first home buyers were a positive for the industry, saying they would “help build further momentum in the property market”.

The government has pledged to release an additional 10,000 places under the First Home Loan Deposit Scheme, earmarked for new dwellings, with amended rules and price caps.

The move has been welcomed by development majors and they also want the HomeBuilder package expanded to units. The government will also pour $1bn in finance to support the construction of affordable housing in a boost to that fast expanding sector.

PIPA chairman Peter Koulizos said it would have been nice to see the property sector further stimulated, including the extension of the HomeBuilder program into next year.

“The HomeBuilder scheme did a lot of the heavy lifting for the property and construction sectors this year, so it would have been great to see the program run for longer than just six months to further underpin employment,” he said.