The Tasmanian Government announced yesterday that they have extended their first home builders grant.
The Hodgman Liberal Government is a strong supporter of our building and construction industry, and we want to boost dwelling construction so more Tasmanians can be in a position to own their own home.
The Hodgman Liberal Government will extend the first home builders grant in the upcoming budget so more young Tasmanians can realise the dream of building their first home.
The extension comes after we doubled the first home builders grant to $20,000 in the 2016-17 Budget.
We understand that there is high demand for new housing, and the first home builders grant is one part of our multi-pronged approach to address housing stress in Tasmania.
According to the latest ABS figures, Tasmania continues to lead the nation in the annual growth in building approvals.
The number of dwelling approvals grew 24.1 per cent in March 2019 compared to March 2018, with Tasmania one of only two jurisdictions to record growth. This is in stark contrast to the sharp fall in National approvals, which was down by 22.4 per cent over the same period.
This initiative will give Tasmanians a greater opportunity to build and own their own home, adding to supply, and complementing the action the Government is taking through our Affordable Housing Strategy.
The extension of the grant will have positive flow-on effects for Tasmania’s booming building and construction industry, creating more work, and more jobs.
Tasmanian prices are still rising, as MyStateBank media release from 9th May reveals.
Median house prices are falling across most parts of the country, yet Hobart is bucking the national trend. Dwelling values in Hobart grew by 3.8% in the year ending April 2019, the highest of all other capital cities and one of only three capital cities to experience growth. Nationally, house price growth fell 7.2% over the same period.
“Australian homeowners see the appeal of selling up in markets like Sydney and Melbourne and buying in Tasmania, where it is more likely they’ll be able to afford a bigger property for a much cheaper price. The state’s strong economic conditions and attractiveness as a lifestyle choice are also big drawcards for residents on mainland Australia, fuelling housing demand,”
“A tightening in credit supply is also driving prospective buyers out of larger property markets like Melbourne and Sydney where demand from investors and owner occupiers has dampened.”
In fact, Tasmania is the only state to have experienced an increase in mortgage applications (+1.5%) over the year to December 2018. Mortgage applications in Victoria and New South Wales fell over the
same period by 15.4% and 19.1% respectively.Pressure on Tasmanian rental market unlikely to continue in the long term.
“Population growth and lack of new housing supply is putting considerable pressure on the Tasmanian rental market.”
MyState’s analysis shows Hobart’s strong rental yield position has increased to 5.2% in the year to April, the highest in the country. The median weekly house rent is $450 – now $10 more than Melbourne.
However, the issue of a lack of housing supply is unlikely to be a long-term one, with the state recording nation leading growth in the number of residential building approvals at 24% from March 2018 to March 2019.
