The package includes around $48 million of new initiatives to support the critical local housing construction industry and its trades – including sparkies, plumbers, carpenters and brickies – to transition when the ‘heat of HomeBuilder’ eases around the second half of next year.
In total, the stimulus is expected to result in an extra 960 new dwelling commencements over the next five years and includes:
- An expansion of HomeStart’s shared equity product* so that it applies to new home construction ($21 million);
- Support for the apartment building sector through the under-writing of a mix of affordable and market apartments within developments within the Adelaide CBD and inner urban fringe (including the Royal at Kent Town project) ($20 million);
- Expanding HomeStart’s Starter Loan** scheme by 1000 loans, with 50 per cent of the extended program to be limited to new home construction;
- Support for a Build-to-Rent proposal in partnership with a Community Housing Provider to deliver up to 180 social, affordable and market rental properties at Eastwood. (At least $10m, including a $9 million land contribution from the South Australian Housing Authority).
Premier Steven Marshall said provision for a stimulus package was made in the 2020-21 State Budget and, while nearly $4 million had already been committed, further investment wasn’t required until now due to the booming housing construction market, as a result of the federal HomeBuilder grant.
“Now is the time to get cracking as the heat from HomeBuilder is expected to come off around the second half of next year and we strive to keep our economy powering ahead,” said Premier Marshall.
“South Australia’s housing construction industry is a vital sector that helps underpin the state’s strong, ongoing economic and jobs growth, and it’s important we do all we can to ensure our trades continue to thrive beyond the surge in activity we’ve seen throughout the pandemic.
“My Government’s significant stimulus package secures a pipeline of work for thousands of local trades for years to come, through a range of initiatives that not only directly supports local construction, but also make it easier for South Australians to get their foot into the door of home ownership.”
Premier Marshall said further initiatives may be considered in due course.
Minister for Human Services Michelle Lensink said the Build to Rent initiative would support more South Australians into a home and provide a major shot-in the-arm for the building and construction industry.
“Everyone deserves a place to call home. That’s why the Marshall Liberal Government is embarking on a state-first Built to Rent initiative set to deliver much-needed affordable housing close to the city for South Australian mums and dads, our young people and ultimately, anyone who needs it,” said Minister Lensink.
“The Eastwood project alone will inject up to $61 million during construction into our economy and support 400 jobs post COVID-19 pandemic.
“Recognising a need for more affordable housing, the Marshall Liberal Government is delivering 1000 new affordable homes by 2025 because we believe in empowering more South Australians to reach their housing aspirations and dreams.”
*HomeStart’s shared equity product is a secondary loan, taken out with a primary HomeStart loan that helps boost a borrower’s borrowing power by up to 25 per cent of the purchase price (capped at $200,000). Under the scheme the borrower is not required to pay interest on the secondary loan but HomeStart is entitled to a proportion of any capital appreciation on the sale or refinancing of the property in addition to the principal on that loan.
**The Starter Loan is an interest free secondary loan of up to $10,000 for five years, taken out with a primary HomeStart loan to help cover the upfront costs for buying or building a home.
For more information please visit: https://www.homestart.com.au/
