Territory Government hints at home buyer incentives as low building approvals hits construction

The Territory Government has hinted at home buyer incentives as low building approvals hits construction.

THE Territory Government has hinted at the introduction of a home building incentive scheme after Master Builders NT said the housing construction market was at its lowest ebb in two years.

The latest Master Builders Fidelity Fund figures show a sharp decline in construction approvals, with 37 less certificates in December 2021 than the previous year.

Fidelity fund certificates are approved just before housing construction work commences and are collated each month.

The December approvals, released yesterday, show only 21 houses approved in December compared with 55 in December 2020.

Seven housing extensions, compared to 10 in December 2020, and zero units three-storeys or below were approved last month.

Master Builders NT chief executive Dave Malone says the housing construction sector is at a low ebb.

Up to 3000 people rely on residential building for livelihoods including builders, subbies, suppliers and developers.

“Our data also confirms there was a jump in November over a very slow October but our data then shows that in December activity was subsequently down 39 per cent on November and a massive 57 per cent on December 2020,” Mr Malone said.

“Our data also shows that in December 2020, contracts were exchanged for 55 new homes to be built, but only 21 contracts were exchanged in December 21.

“Without question the private housing market is at its lowest ebb since January 2020.

“The removal of incentives such as Homebuilder and BuildBonus have had a significant and lasting impact on demand for private housing. The consequences of this are being seen in workers’ pay packets and business turnover more generally.”

Mr Malone says figures contained in Treasury Economic Briefs appear to contain remote housing construction and private housing.

“We still very much believe that bush housing is very important to our community and to the construction sector, but it’s crucial to differentiate between Government funded projects and where the private market might be.

“Government figures should not leave the impression that housing is in rosy health when the real picture is very different.”

Chief Minister Michael Gunner has not ruled out a new incentive scheme as part of the 2022 budget.

“We always monitor residential building activity, and will review our home buyer assistance schemes as part of the 2022 Budget.

“The Territory’s BuildBonus grant was highly successful, with 870 applicants receiving a grant to assist with building a new home and another 151 pending the commencement of construction. Along with the Commonwealth’s HomeBuilder scheme, it supported jobs and confidence during the peak of the Covid- 19 pandemic, and brought forward building activity across the Territory. This is reflected in the value of residential ‘work under construction’ in the Territory which, at $277m, is the at its highest level since early 2015.

“While the temporary BuildBonus scheme ceased in April 2021, the Territory government still provides a $10,000 grant to first home buyers to buy or build a new home in the Territory, assisting first home buyers to build affordable homes and providing ongoing residential construction stimulus.

“Sustained population growth is the critical factor driving demand for new dwellings and new projects proceeding in the Territory will support business and consumer confidence and sustainable population growth.”

Originally published as Territory Government hints at home buyer incentives as low building approvals hits construction