08 April 2009
Todays housing finance figures show that the first home buyers bonus must be increased and extended, according to the Urban Taskforce.
The Taskforces chief executive, Aaron Gadiel, said todays Australian Bureau of Statistics (ABS)housing finance figures reveal the proportion of owner occupied home loans going to first home buyers shot up from 19.7 per cent (in September) to 26.9 per cent (in February).
This is the highest proportion of first home buyers since the Australian Bureau of Statistics began keeping records in 1991.
The dramatic cut in interest rates and the first home buyers grant has meant that home ownership is no longer just a dream for many thousands of people.
The surge in first home owners could pave the way for a recovery in the home building activity,but only if the first home owners grant is increased and extended.
Once confidence returns and developers can access business credit, we can expect a strong housing recovery.
Years of pent-up housing demand will have to be met. Mr Gadiel said it was essential that the Federal Government urgently commit to an extension of the $21,000 federal grant for new homes beyond June this year.
If the first home owners grant is prematurely axed, there will be rapid fall-off in first home buyers.
The last thing we need is that kind of demand-side shock.
State-by-state since the first home buyers grant was announced in September 2008:
- NSW the proportion of owner occupied home loans going to first home buyers shot up from 20.9 per cent (in September) to 27.6 (in January) and to 29.3 per cent (in February).
- Victoria the proportion of owner occupied home loans going to first home buyers shot up from 20.8 per cent (in September) to 27.3 (in January), but fell slightly to 26.3 per cent (in February).
- Queensland the proportion of owner occupied home loans going to first home buyers shot up from 18.2 per cent (in September) to 25.9 (in January) and to 26.7 per cent (in February).
The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.
