HomeBuilder impact sees new home loan approvals continue to break record levels
The number of loans for the construction of a new home saw record-breaking levels in November 2020, as the figure, tracked by the ABS, record its sixth consecutive rise.
New home loan commitments in November jumped a further 7.2 per cent higher than the record-breaking levels in October 2020 to now be 99 per cent higher over the year.
HIA economist Angela Lillicrap says HIA's new home sales data suggests the detached housing finance approvals will continue to be strong over the coming months.
“It is evident in today’s data that HomeBuilder has been successful in boosting confidence in the market and creating work on the ground,” Ms Lillicrap says, adding that the extension of HomeBuilder will see the strength in housing finance data extend into 2021," Lillicrap says.
The value of construction loan commitments grew 5.6 per cent in November, rising 75 per cent since July. This follows the June implementation of the Government’s HomeBuilder grant in response to COVID-19.
Loans for first home buyers also soared in November, with 13,905 loan commitments from first home buyers the highest since 2009. The number of loans accounted for 42 per cent of the total number of owner occupier loans issued in November.
CommSec economist Ryan Felsman says housing activity across Australia is buoyant, supported by record low mortgage rates and government policy initiatives.
"Home prices are lifting, new home sales have hit decade highs and increasing numbers of young Aussies are committing to home ownership," Felsman says.
New housing loan approvals hit record highs in November with the easing of lockdown restrictions in Victoria (up 19.6 per cent) further driving up home loan demand.
Am I eligible for HomeBuilder?
Time is running out for prospective HomeBuilder applicants to to advantage of the $15,000 grant to construct a new home, with the government stimulus set to conclude on March 31. Applications however will now be taken until April 14 2021.
To be eligible for HomeBuilder, below are the criteria:
- Construction must commence within six months of the contract being signed.
- The property value cannot exceed $950,000 in NSW, $850,000 in Victoria or $750,000 in all other States and Territories.
- Applications must be submitted to the relevant State Revenue Office by April 14 2021.
What can I buy?
Urban has taken a look at some projects across the country which qualify for HomeBuilder grants.
Prices: From $605,000
The Stockland developed Haven in Altona North offers a collection of boutique townhouses, designed by the award-winning SJB Architects. They have two, three and four bedroom townhouses, with prices starting from $605,000 for the two bed, two bath townhouses with a parking spot.
The three bedroom townhouses, spanning nearly 200 sqm, start from $742,000 and the four bedroom townhouses start from $805,000, with 216 sqm of space.
Prices: From $545,000
Development Victoria have secured a prime site in Sunshine North, with a vision to create a brand new collection of 300 townhomes, comprising of two, three and four bedroom configurations.
Prices start from $545,000 for the two bedroom townhouses set in a master-planned community by RobertsDay, with plans for a new 3,600 sqm park.
Sixth Avenue, Chelsea Heights
Prices: From $599,000
Point Architects have designed the townhomes in the bayside Chelsea Heights, the development of the Aultun Group. They've created 59 townhomes with prices starting at $599,000 for the two bedroom townhouses set over two stories. The three bedders start from $650,000 and the four bedroom townhouses from $820,000.
Sixth Ave. Chelsea Heights has already achieved a ‘Best Practice’ rating for BESS (Built Environment Sustainability Scorecard) with many key sustainable design strategies including a 5 star gas hot water system, water efficient tapware and showerheads as well as bicycle parking provided within each home and recycled water for garden irrigation and toilet flushing.
