Land developers are not surprisingly welcoming an extension to the HomeBuilder grant until March 31, 2021.
During Covid-19, as intentioned by the grant, Logan’s pockets of new housing developments have seen an upsurge in interest from buyers, particularly those looking for their new first home.
The rise in interest comes at the exasperation of some property agents who feel established properties pose a better investment for buyers.
Browns Plains Real Estate principal Neil Giles said some older homes had dropped in value since initially being built up to 10 years earlier in new estates.
“I think the government should extend the first home owners’ grant to established homes,” he said. “But you can’t deny most people want shiny and new.”
AVID Property Group general manager Bruce Harper has two land developments in Logan, and he supports the intentions of the government to boost job development in the area.
“Across all our AVID communities in Australia we are seeing buyers jump at the chance to purchase a new home,” Mr Harper said.
“From June to October 2020 we have seen an 83% increase in the number of deposits from the same period last year, with more than 50% of these buyers applying for the HomeBuilder Grant.
“Notwithstanding the current economic uncertainty, we’re seeing new buyers respond very positively to the scheme with the demand for land clearly highlighting that many buyers are taking advantage of the opportunity.”
Covella at Greenbank and Killara at Logan Reserve are among the successful properties.
Mr Harper said a number of communities had been fast-tracked to be delivered sooner than scheduled to keep up with demand.
“Across the Queensland communities, we have recorded a 105% increase in the number of deposits from the same period last year, which just goes to show how effectual the grant has been,” he said.
“We are also seeing a number of home buyers bring forward their decision to purchase a block of land due to the fact that many were also eligible for the Queensland Government’s First Home Owners Grant as well – providing what is often several years’ worth of savings to buyers.
“It is estimated that for every dollar spent in the residential construction industry, it generates three times as much in the broader economy, providing the industry with confidence to continue to invest, drive economic activity and support employment.”
He said about 60 people were employed on every new home.
