SUNRAYSIA builders have had one of their best-ever years as the Federal Government’s stimulus measures turbo-charge the local property market.
The HomeBuilder program – which includes a $25,000 grant for new builds and substantial renovations until December 31 – has driven the increased buyer demand in the last half of 2020, local builders say.
Lockstar Homes owner Paul Lock said 400 homes were usually built each year in Mildura, “but it’s been in excess of 500 this year”.
“It’s been a bloody good year,” he said.
“This has been on par with the busiest year we’ve had since we started operating in 1986.
“We’ve sold about 40 (homes) this year, which is about our average. But they have been bigger houses.
“We’ve had a few $1 million-plus builds this year, which has put our turnover (based on sales by the square metre) at record levels.”
Mr Lock said there had been a spike in the number of Melbourne buyers in the Mildura market.
“They represent about 20-25 per cent of our buyers this year, and this is a market we didn’t have before,” he said.
“Really, it’s been a perfect storm of events this year that has seen the local property go so well.
“There was this mad rush (after the HomeBuilder grant was announced in June).”
The government recently announced changes to the HomeBuilder program. It will be wound back from January 1, when the grant falls to $15,000 for building contracts signed before March 31 next year.
Mr Lock said house-land packages were selling fast at the new Riverside Rise Estate, where there are 44 lots off Riverside Avenue, between Fifteenth and Sixteenth streets.
“There’s been a lot of interest in this new development,” Mr Lock said.
He expects that next year will be even busier than 2020.
“The federal grants will mean the building surge will continue,” he said.
G.J. Gardner Mildura managing director Brad Stanbrook said his business had boomed this year with 94 houses sold, up from 56 last year.
“We had a quiet start to the year, but it’s ended up being one of our best-ever,” he said.
“The government money has set the building industry on fire. Sales over the past six months have gone through the roof.
“The workload has been quite intense, with many people knocking on our door looking to buy a new home.
“The grants will mean next year is going to be even busier for construction. We’ll start the year building two to three new houses a week.”
JD Construction Mildura owner Josh Dawson said his business turnover was “up a little on last year”.
“But the last two months have been very busy. We’ve signed 20-25 contracts (to build new houses) in that period,” he said.
“The first six months of 2021 will be all systems go. We’ll build 12-15 houses in the first quarter, with 80 per cent of builds around the Gol Gol area.”
Both Mr Dawson and Mr Lock called on Mildura Rural City Council to fast-track plans to open up more land for residential development.
“We really need more land opened up to keep pace with the high buyer demand,” Mr Dawson said.
Mr Lock said: “When more land is rolled out on the market, it’ll get swallowed up quick.”
Loans surge in ‘mad rush’
LATEST lending data shows the number of loans to owner-occupiers soared by 11.5 per cent during the month of October, smashing the record set just a month earlier.
Master Builders Australia chief executive Denita Wawn said the Federal Government’s HomeBuilder program, which has been extended by three months, was the catalyst for the “remarkable result” .
“Work on all of these new home-building projects is keeping the residential building industry very busy and means that 2021 will get off to a very positive start,” Ms Wawn said.
HomeBuilder provides eligible owner-occupiers, including first-home buyers, with a grant to build a new home or substantially renovate an existing home.
“The extension to HomeBuilder represents a very positive development,” Ms Wawn said. “It means that new home building and major home renovations work can look forward to a steady pipeline in 2022.”
Independent analysts say Mildura is one of the hottest property markets in Australia.
“Housing affordability is one of Mildura’s trump cards and this, combined with low interest rates, is proving a winning formula in the mad rush to invest,” Propertyology head of research Simon Pressley said.
“It’s been building up over the past five years with solid market growth.
“Since January 1 this year, a typical property in Mildura has increased in value by 15 per cent. The data we’ve collected on this double-digit growth is quite remarkable.”
