No need for a halt to development: NSW bushfire rules are already tough

17 February 2009

An extra 7,700 first-time buyers secured their own home between October and December last year, according to the Urban Taskforce.

Todays Australian Bureau of Statistics housing finance figures for December reveal the proportion of owner occupied home loans going to first home buyers shot up from 19.7 per cent (in September) to 25.4 per cent.


In mid-October the Federal Government tripled the first homeowners grant for newly-constructed homes. The Urban Taskforces chief executive, Aaron Gadiel, said an extra 7,700 first-time buyers had since purchased their own home.


Every month more first home buyers have been entering the market, Mr Gadiel said.


In October there were 550 extra first home buyers on top of Septembers figure, this climbed to 2,300 in November and there were 4,800 more in December.


In NSW the proportion of owner occupied home loans going to first home buyers has jumped from 21.0 per cent (in September) to 26.9 per cent (in December) with an extra 2,600 first-time buyers getting their own home.


In Queensland the same proportion has increased from 18.2 per cent (in September) to 24.4 per cent (in December) with an extra 1,600 first-time buyers securing their own home.


In Victoria the proportion has swelled from 20.9 per cent (in September) to 25.2 per cent (in December) with an extra 1,400 first-time buyers acquiring their own home.


Mr Gadiel said that this was the largest market share for first home buyers since December 2001.


The increased first home buyers grant for newly constructed properties has been a real boost to urban development and job numbers, he said.


The grant is due to expire in only four months on 30 June.


Its crucial that the grant is extended we cant afford any drop off in first home buyer activity while the broader economic crisis is continuing.


For every $1million in construction expenditure, 27 jobs are created throughout the broader economy.


The construction activity made possible by property developers contributes $69 billion to the national economy each year and creates 709,000 direct jobs.


The construction industry is Australias third largest source of employment.


The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.


Key facts about new home construction:

  • Less NSW homes were approved for construction in December than in any other month in recorded history, according to Australian Bureau of Statistics figures released earlier this month.
  • Only 27,600 homes were approved for construction in NSW in 2008, which is 12 per cent lower than the previous record trough of 31,300 set in 2007. The average number of NSW homes approved each year since the ABS began collecting data in 1983 is 42,000.
  • The ABS data shows that home approvals in NSW have been trending negatively for 12 months with a 31 per cent fall over this period.
  • The ABS data shows that home approvals in Victoria have had a negative trend for five months, with a 17 per cent fall.
  • Queensland has been hardest hit off a higher base where home approvals have been trending negatively for 14 months. Queensland has seen a 49 per cent fall in the home approvals over this period.

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