The Real Estate Institute of Queensland (REIQ) has joined growing calls for the extension of the HomeBuilder program and the expansion of the First Home Loan Deposit program.
The federal government must consider the whole real estate industry when introducing stimulus measures, said Antonia Mercorella, CEO of REIQ
"In doing so, it will help increase consumer confidence, accelerate our economy, and expand the labor market in both construction and real estate, two of the largest employers in the world. ; Queensland industry, ”she said.
Mercorella believes that without expanding the HomeBuilder program, builders will not be able to meet demand from existing applicants. Since every sale approved under the scheme must have funding in place and board approval by December 31, pent-up demand appears to be driving construction costs up.
"It shouldn't be happening in this environment," she said. "Despite relatively stable market conditions, low interest rates and high levels of demand, this does not appear to be enough to support new residential construction."
In fact, the costs of new construction had already increased by 220.3% from 1995 to 2018, while the costs of established housing had only increased by 114% during the same period.
Read also: Answer to five questions about the HomeBuilder grant
Additionally, rising housing construction costs are forcing the federal government to consider removing the limits on the Home Loan First Deposit Program Extension and allowing home loan buying homes already established, said Mercorella.
“The fact that the federal government is neglecting established housing is disappointing given that the original program included established residential housing,” she said.
Mercorella said the initial set-up of the deposit system offered buyers a wider range of affordable options since the purchase of established homes was allowed.
"Without comprehensive stimulus measures that extend to existing homes, it is likely that this will compound artificial price hikes in an already volatile climate, making it increasingly difficult for many home buyers buy a property, ”she said.
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