03 Sep Policy update
Government policy and law changes have an ongoing influence on when and where people build or buy homes.
South Australia’s urban and regional planning system is currently undergoing its biggest reform in more than 25 years, which will lead to the introduction of a revised Planning, Development and Infrastructure Act 2016 (SA).
The new planning and development system will affect how development policy is formed and amended, and how development applications are lodged and assessed.
The First Home Owners Grant has helped boost the real estate market by making it easier for people to acquire their first home and, in its wake, COVID-19 measures are also having an influence.
The Federal Government’s HomeBuilder Grant provides eligible owner-occupiers, including both subsequent home buyers and first home buyers, with a grant of $25,000 to build a new home or substantially renovate an existing home.
Conditions apply the Founder and Director of VThree Real Estate, Ruan Perera, says the stimulus is changing people’s perspectives on what type and the timing for them to buy a home.
“There has been a complete change in what people are looking at,” he says. “House and land packages and off-the-plan houses have really become quite a strong option for more and more people to buy because they would then get that grant.”
“Demand for these homes has increased dramatically, compared to previously. That same buyer that would have preferred searching for an established home in their price range in a different suburb and are now open to these other options and thinking more about their wealth creation strategy from buying their home. Supply of land in areas people want to live that allows affordably priced new homes to be delivered is the challenge. ”
V Three Real Estate’s Senior Property Partner, Steve Meins, adds: “Home builders have been inundated in their display homes. Colleagues I know would normally have two to three inquiries a day. Now it’s up to about 50.”
He says this is leading to a higher demand for shovel ready land to build on, especially in popular inner suburban areas, which is also the challenge to find. However, established properties in the lower value areas are floundering on the market, as demand for these houses drops off and they sit on the market.