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The South Australian government has launched its Housing Construction Stimulus Package, with an aim to keep boosting residential building post-HomeBuilder.
The new stimulus package from South Australia will include $48 million in new initiatives, targeting the local construction industry and trades such as plumbers, electricians, carpenters and bricklayers, as the “heat of HomeBuilder” eases in the second half of the year.
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The stimulus is expected to result in 960 new dwellings over the next five years.
It includes:
- An expansion of HomeStart’s shared equity product, an interest-free secondary loan, taken out with a primary HomeStart loan, which allows home buyers to borrow up to 25 per pent of the purchase price of a property (up to a maximum of $200,000). The product from the state-backed non-bank lender will now apply to new home construction, aided by $21 million from the stimulus package.
- The state government will allocate $20 million towards underwriting a mix of apartments within developments in the Adelaide CBD and inner suburbs.
- The HomeStarter Starter Loan scheme, an interest-free secondary loan that grants home buyers up to $10,000 to help cover the upfront costs of buying or building property for up to five years, has been expanded with 1,000 more loans available. Half of the additional loans will be limited to new home construction.
- At least $10 million has been designated to backing a build-to-rent proposal, in partnership with a community housing provider to deliver up to 180 social, affordable and market rental properties in Eastwood, an inner-southern suburb of Adelaide. The $10 million allocation includes a $9 million land contribution from the SA Housing Authority.
Previously, around $4 million had been committed for a stimulus package in the 2020-21 state budget.
But South Australia Premier Steven Marshall commented further investment was now required amid a booming housing market, resulting from the federal government’s HomeBuilder grant.
“Now is the time to get cracking as the heat from HomeBuilder is expected to come off around the second half of [2022] and we strive to keep our economy powering ahead,” Mr Marshall said.
“South Australia’s housing construction industry is a vital sector that helps underpin the state’s strong, ongoing economic and jobs growth, and it’s important we do all we can to ensure our trades continue to thrive beyond the surge in activity we’ve seen throughout the pandemic.”
He added the measure would also make “it easier for South Australians to get their foot into the door of home ownership.”
Further, the Premier hinted that further initiatives may be considered in due course.
Michelle Lensink, the Minister for Human Services, stated the build-to-rent initiative would provide a major injection for aspiring home buyers and the construction industry.
The measure is the state’s first build-to-rent initiative, which Ms Lensink commented will deliver “much-needed affordable housing close to the city”.
“The Eastwood project alone will inject up to $61 million during construction into our economy and support 400 jobs post COVID-19 pandemic,” she said.
[Related: Rise in Perth house prices tipped for 2022]
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