HomeBuilder package estimated to add 30,000 additional homebuilds

Cornerstone Group Senior Director James Cullen says the real question about the government’s HomeBuilder package “will be around additionality; how much more additional housing demand will this generate?” The government unveiled a $688 million package on Thursday which will provide eligible individuals or families with a $25,000 grant to renovate, if the costs total at least $150,000, or build a new home under $750,000. Mr Cullen told Sky News government projections had estimated an additional 30,000 homes would be built in the sector, but the “proof would be in the pudding”. “The question will be, will it be enough to sort of meet that shortfall we know is looming,” he said. “That’s a $700 million spend, we know that that kind of spend will generate a multiplier effect throughout the housing sector so the bottom line is there’ll be good news and importantly for the housing sector and for construction jobs there’ll be some certainty that the government’s got some cash in the sector. “I suppose it’s a bit disappointing though that we don’t have a social housing component of that because we do know that without that particular government support and demand those houses don’t get built. “So if you want a way to guarantee new demand in the housing sector, an investment through social housing will guarantee that because we know that without it, it doesn’t happen.”

from National | Daily Telegraph https://ift.tt/2Bt88W9