SA records strongest new home sales growth in nation
South Australia has bucked the national trend for new home sales, recording a large increase last month despite every other surveyed state being in negative territory.
The HIA New Home Sales report showed new home sales in SA jumped 35.5 per cent in July. In contrast, every other surveyed state experienced a fall.
|July growth (%)|
The report estimates the number of building contracts entered into from surveys taken of builders during July.
It comes weeks after the Malinauskas Government abolished stamp duty for first home buyers of new homes. The change was designed to help first home buyers get a foot on the ladder, while boosting supply to offset additional demand.
Eligible first home buyers who build or buy a new home valued up to $650,000 can now receive up to almost $30,000 in stamp duty relief as well as a First Home Owner Grant payment of $15,000, bringing total relief from the state government up to almost $45,000.
The June State Budget included a $474.7 million package to support the delivery of 3,600 new homes over five years and reduce the cost of housing for around a further 14,000 new homes.
As put by Stephen Mullighan
This is a significant result for South Australia showing the strength of our building industry and economy.
We know new builds are slowing across the country, but SA is defying the downturn.
Abolishing stamp duty for first home buyers purchasing a new home will only help.
Heading into an uncertain and potentially volatile period for the building industry, this is welcome news and should inspire confidence for South Australia’s building sector.
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