Perth New Home Builders Industry Update September 2020
The State Governmentt has had to date 283 applications for the $20,000 home builders grant, and 96 of those have already had approval ($1.92m).
The question remains will the State Government extend the builders grant?
What we have to consider is the fall over rate of the current Perth homebuilders signed deals pending contracts, and why we will have a possible 30-40% fall over rate on these deals going forward.
The approval process, lending, valuations, titled land, employment and what the net migrations looks like going forward, are some of the biggest things to take into consideration.
The housing forecast group has released numbers last week showing we still are well below 20,000 homes per year
Perth has a lack of new homes stock and Reiwa will continue to push hard on the State Government, particularly with the major mining companies now promoting WA FIFO workers.
At this point in the current circumstances, it makes good sence to extend the builders grant.
The attached graphshow the return to pre covid 19 numbers to the front end of the Perth new homes industry, after just 3 months.
As you may have noticed already, builders are backing advertising on all platforms, pushing custom home designs, demolition and rebuilds as well as home designers in Perth.
The Perth display home traffic also reflects the same trend.
About the Author
Tristan Kirkham | Managing Director
Tristan has managed some of Australia’s major building companies, both project and private. His committment to customer service and providing market leading communication product for the home building industry has led to a role as regular Judge in the HIA Green Smart, HIA Kitchen & Bathroom Awards and the major Housing Awards. Winning multiple awards throughout his career in the housing industry, he is dedicated to improving the industry standards and practices. Tristan's vision is to provide a better way to build homes for all parties.