Coronavirus Australia: thousands rush for HomeBuilder grants

More than 8000 Australians have registered interest in accessing $25,000 HomeBuilder grants.

Steve and Kaleah Kolano with Steve’s dad Joe and their seven daughters, Lucia, 13, Amelia, 11, Olivia, 8, Arya, 7, Isabella, 6, Isla, 3, and Layla, 10 months at their home in the Canberra suburb of Calwell, which they are renovating. Picture: Sean Davey.

More than 8000 Australians have registered interest in accessing $25,000 HomeBuilder grants, with Victoria and Queensland leading the “surge” in securing funds from the construction scheme expected to pump up to $15bn into the economy.

States and territories are now moving to deliver additional stimulus for the building industry following the Morrison government’s unveiling of its $688m uncapped program, with Western Australia announcing its own generous housing assistance scheme on Sunday.

Housing Minister Michael Sukkar said there had been more than 130,000 visits to the HomeBuilder website as of Saturday night.

“The government expects HomeBuilder will be overwhelmingly supported by first-home buyers, many on lower incomes, looking at purchasing a house-and-land package and growing families seeking to upgrade to a larger new home,” Mr Sukkar told The Australian.

“It will of course include, in some cases, people who will undertake a substantial rebuild of their existing home to meet their future needs.”

 

Mr Sukkar said initial interest in accessing the $25,000 grants was “very welcome for the tradies we want to keep in work”.

Simonds Group chief executive Kelvin Ryan, who leads one of the nation’s top homebuilding groups, said it had recorded a “trebling” of inquiries since the HomeBuilder package was announced.

“It’s been quite significant. Our digital inquiries have trebled and anecdotally our displays have also livened up,” Mr Ryan told The Australian.

Mr Ryan said the stimulus package, sparked by industry concerns of a slowdown in work by September, had provided timely support for builders across the country.

“The situation had been very dire. I know there’s been some criticism about starting within three months, but that’s what the industry had asked for,” he said.

Master Builders Australia chief executive Denita Wawn said the HomeBuilder caps would not be a barrier given the “average value of a new detached house is $330,000 and the average loan amount for a home renovation is $160,000”.

“It’s going to unleash untapped demand in the substantial renovation market for upgrades and knockdown rebuilds and for new home builds,” Ms Wawn said.

“More than 80 per cent of Australian households are eligible for HomeBuilder grants based on income and many have substantial equity in existing homes to borrow against in a record low interest rate environment.”

While conceding there may be some issues in the Sydney market in relation to the $750,000 new-home-build eligibility criteria, Mr Ryan said the vast majority would benefit from the scheme and other support measures from state and federal governments.

Mr Ryan, who said the industry had “won a car and we’re not going to argue”, suggested a supply stimulus in the social housing sector would also be “most welcome” to keep the industry firing. He also singled out lending by banks and the processing of building approvals as keys in ensuring the package delivered on its promise.

Canberra building surveyor Steve Kolano had started renovating his house before the COVID-19 pandemic but the government’s program will allow him to expand and finish his plans.

“It’s just opportune,” Mr Kolano, a father of seven, said. “If we do the renovation now, we have $25,000 towards it.”

With daughters ranging in age from 10 months to 13, Mr Kolano said the renovation would create an extra one or two bedrooms, another living area, a stairwell, a new laundry and thermally effective windows.

“You don’t get a lot for $150,000, really,” Mr Kolano said.

Additional reporting: Tessa Akerman