Organisations across the property industry have responded to the news today of the Federal Government's HomeBuilder package to support the residential building sector for new homes and renovations.

Master Builders Australia believes that the Federal Government’s announcement of the HomeBuilder scheme today will be a massive relief to the 1000s of home builders and tradies around the country. 

Key statements

• "It will mean more new homes, more small businesses and jobs are protected" - Master Builders Australia
• "The industry needed a circuit breaker and this HomeBuilder program is very welcome" - Property Council Australia
• "Stimulating home building activity has been an effective recovery catalyst in past economic shocks" - Housing Industry Association
• "This alleviates the concerns that the REIA had with a scheme that was only assisting new dwellings" - Real Estate Institute of Australia

At a Glance

• House owners will need to provide $150,000 of their own money to be eligible for the stimulus towards building and renovations
• The HomeBuilder package will cost the tax-payer $688 million
• The plan will be restricted to people on middle incomes and to new homes and major renovations valued between $150,000 to $750,000.

“HomeBuilder will be a lifeline for an industry facing a valley of death in the coming months," said Denita Wawn, CEO of Master Builders Australia.

"It will mean more new homes, more small businesses and jobs are protected and provide a stronger bridge to economic recovery for our country,” said.

“Based on the Government’s estimated 27,000 grants, we think the scheme will be used for $10 billion in building activity, supporting the viability of 368,000 small builders and tradies – the businesses which employ 800,000 people in communities around Australia." 

The Property Council of Australia said the Federal Government’s new HomeBuilder program will help stimulate confidence as well as save jobs in the residential construction sector.

“Demand for new housing construction was threatening to fall off a cliff over the next six months," said Ken Morrison, Chief Executive of the Property Council.

“With weak consumer confidence and population growth, the industry needed a circuit breaker and this HomeBuilder program is very welcome."

Mr Morrison called on state and territory governments to get behind the program by adding further incentives to bring projects forward and support jobs.

“Importantly, the HomeBuilder scheme will complement existing state and territory government programs to help home buyers.

“State and territory governments now have a big opportunity to strengthen this economic impact by either topping up these grants or providing stamp duty relief for newly constructed dwellings."

The Housing Industry of Australia estimates the package could generate over $15 billion in national economic activity.

“The package will see slabs poured in the second half of the year, meaning jobs are kept and houses built," said HIA Managing Director, Graham Wolfe.

“Stimulating home building activity has been an effective recovery catalyst in past economic shocks. HIA is confident it can again support the national economy through this difficult period."

The Real Estate Institute of Australia had recently warned that a stimulus package that only supported new home builds could be detrimental to existing home stock, which would reverberate through the real estate industry.

Today's announcement, however, that included renovations of existing homes was welcomed by the industry body.

"It is the owner occupier that decides how the extra dollars are to be spent, whether it is on a new build or a major renovation to their existing home," said REIA president Adrian Kelly.

"This alleviates the concerns that the REIA had with a scheme that was only assisting new dwellings.

“First home buyers can benefit by buying a property at the lower end of the market in a location they prefer and upgrade immediately.”

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