Blog/News - WA Property Articles & COVID-19 

URBAN DEVELOPMENT INSTITUTE OF AUSTRALIA
WESTERN AUSTRALIA DIVISION INCORPORATED

"2020-2021"

COVID-19 Government Building Industry Stimulus Packages

Due to "COVID-19" during "2020" the Government will release various housing stimulus packages for people who "may qualify" for a financial incentives.  Note: All stimulus packages will be subject to various terms, conditions and criteria refer to websites/links for further information, as these posts are a guideline only. This BLOG/NEWS will be updated as more information is released. For released updates and current information: click on black links;

Western Australia retains the title as most affordable state for buyers and tenants 4 June 2020

https://reiwa.com.au/about-us/news/western-australia-retains-the-title-as-most-affordable-state-for-buyers-and-tenants/?utm_campaign=reiwa.com-newsletter&utm_campaign=weekly-listings&utm_content=click-here-for-more-information&utm_medium=email&utm_medium=email&utm_source=activepipe&utm_source=pardot

 

REIWA PERTH PROPERTY AND WA REAL ESTATE (CURRENT TRENDS)

https://reiwa.com.au/about-us/news/

MBA MEDIA RELEASE HOMEBUILDER & BUILDING BONUS STIMULUS UPDATE 17 July 2020

FEDERAL HOMEBUILDER PACKAGE

Since the announcement of the Federal Homebuilder package, Master Builders has been constantly engaged with the Federal Treasury Department (Treasury) on raising questions with the criteria to provide clarification for our members and maximise the benefits of the HomeBuilder stimulus measures. Many questions have been raised with Treasury on various scenarios and circumstances.  Key issues included the timing arrangements, valuations and financial thresholds, defined terms, and the applications processes. Questions raised by Master Builders can be accessed below; 

https://www.mbawa.com/wp-content/uploads/2020/07/20200716-Federal-HomeBuilder-Package-Questions-and-Answers.pdf?utm_medium=email&utm_campaign=Member%20Alert%20-%20HomeBuilder%20%20Building%20Bonus%20Update&utm_content=Member%20Alert%20-%20HomeBuilder%20%20Building%20Bonus%20Update+Preview+CID_04c9372d689bb12ca5d44b0ea05114d1&utm_source=Email%20marketing%20software&utm_term=here&utm_medium=email&utm_campaign=Member%20Alert%20-%20HomeBuilder%20%20Building%20Bonus%20Update&utm_content=Member%20Alert%20-%20HomeBuilder%20%20Building%20Bonus%20Update+CID_04c9372d689bb12ca5d44b0ea05114d1&utm_source=Email%20marketing%20software&utm_term=Questions%20raised%20by%20Master%20Builders%20and%20the%20responses%20read%20here

Treasury has responded, answering many of our questions.  The website has been updated and the Frequently asked Questions can be found by pressing the link below; Several key points have been clarified and appropriate changes made;

https://treasury.gov.au/coronavirus/homebuilder

Read the Treasury updated answers here;

The Federal Government has announced key refinements to Home Builder

Time allocation has been made for home buyers to arrange their finance approvals, building approvals and able to meet other legal requirements before work is required to commence, rather than the fixed three-month time frame initially announced.Full clarification that a sales contract for a home purchased off the plan will be eligible in the same way as a building contract.Process alignment with the current timing of payments for first homeowner grants for new homes.If you sign the sales contract to buy the off-the-plan dwelling between 4 June 2020 and 31 December 2020 (inclusive) and construction commences on or after 4 June 2020 and no later than three months after the contract is signed, then the property purchase may be eligible for HomeBuilder. However, if you sign the contract to buy the dwelling after 4 June 2020, and construction on the dwelling commenced before 4 June 2020, then it does not qualify for HomeBuilder. HomeBuilder is not intended for properties where the applicant does not own the property (both dwelling and land) – such as where a tenant lives at a property owned by somebody else, or where a person lives in a dwelling that they own and that is situated on land owned by somebody else (such as in land-lease communities).New builds – grants will be paid after construction has commenced and the first progress payment has been made to your builder;Substantial renovations – grants will be paid after construction has commenced and at least $150,000 of the contract price has been paid in respect of the renovation;For off-the-plan /new home purchases – grants will be paid after the applicant(s) name is registered on title; and in Tasmania, the timing of the grant payment may be different in certain circumstances and you should refer to the State Revenue Office of Tasmania website for further information.HomeBuilder can only be used for one contract per applicant. For renovations, the building contract must be valued between $150,000 and $750,000.

All States have been working together to develop consistent guidelines and the application form. 

It is expected that banks will be able to apply for applicants as per FHOG processes in jurisdictions.  Conversations between Government and the banks is continuing.

Hopefully application processes for most states will go live soon.

Several questions are still to be answered, and Master Builders is continuing our discussions with Treasury to provide certainty for members and their clients. 

 

STATE GOVERNMENT BUILDING BONUS PACKAGE

In addition, our ongoing discussions with the State Government regarding the Building Bonus is to ensure the stimulus measures continue to have the desired effect, a welcomed increase in building activity, throughout the recovery period and into 2021.

Master Builders had raised several key questions and scenarios on the State Building Bonus on behalf of members.  State Revenue (RevenueWA) have provided answers which can be accessed below.

https://www.mbawa.com/wp-content/uploads/2020/07/20200716-Master-Builders-State-Stimulus-Package-and-Building-Bonus-questions-Scenarios.pdf?utm_medium=email&utm_campaign=Member%20Alert%20-%20HomeBuilder%20%20Building%20Bonus%20Update&utm_content=Member%20Alert%20-%20HomeBuilder%20%20Building%20Bonus%20Update+CID_04c9372d689bb12ca5d44b0ea05114d1&utm_source=Email%20marketing%20software&utm_term=Master%20Builders%20answers%20from%20RevenueWA%20can%20be%20read%20here

MBA - Media Release - State Housing Stimulus Package a Gamechanger - 7 June 2020

($444m housing stimulus package will offer an amazing building bonus of $20,000 for all new builds in conjunction with the existing state $10,000 First Home Owner Grant and the Commonwealth $25,000 HomeBuilder scheme announced this week. When the existing state stamp duty concession for first home buyers is factored in, it creates a potential benefit of around $69,440. If you are not a first home buyer and qualify for HomeBuilder, you could receive $45,000 for a new build, which is outstanding)

*Subject to Terms/Conditions

https://www.mbawa.com/wp-content/uploads/2020/06/State-building-package-a-gamechanger.pdf

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MBA - Media Release - Federal HomeBuilder Scheme - 3 June 2020

(2020 Grant of $25,000 to build New Home or Substantially Renovate Existing Home)

*Subject to Terms/Conditions

https://www.mbawa.com/wp-content/uploads/2020/06/WA-Builders-applaud-Federal-HomeBuilder-Scheme-FINAL.pdf

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MBA - Media Release -WA State Housing Stimulus Package "A Gamechanger" - 7 June 2020

WA government announces $444 million housing stimulus

*Subject to Terms/Conditions

https://www.mbawa.com/wp-content/uploads/2020/06/State-Building-Bonus-Package-a-Gamechanger-Embargo-removed.pdf?utm_medium=email&utm_campaign=Member%20Alert%20-%20Advocacy%20win%20-%20WA%20Stage%20Government%20Building%20Bonus%20GAMECHANGER&utm_content=Member%20Alert%20-%20Advocacy%20win%20-%20WA%20Stage%20Government%20Building%20Bonus%20GAMECHANGER+CID_0ff0c4ce61e829fa944a9d040ff9388c&utm_source=Email%20marketing%20software&utm_term=available%20here

WA government announces $444 million housing stimulus: KATE BURKET WITTER/JOURNALIST - 7 JUN 2020

*Subject to Terms/Conditions

https://www.domain.com.au/news/wa-government-announces-444-million-housing-stimulus-961143/

ABC NEWS ARTICLE (4/6/2020) - CONSTRUCTION STIMULUS "RENOVATIONS" 

*Subject to Terms/Conditions

https://www.abc.net.au/news/2020-06-03/government-coronavirus-construction-stimulus-renovations-25k/12317786

NEW HOME BUILDER SCHEME: WHAT SCOTT MORRISONS NEW SCHEME MEANS FOR YOU - 4/6/2020

*Subject to Terms/Conditions

https://www.realestate.com.au/news/new-homebuyers-grant-what-scott-morrisons-new-scheme-means-for-you/

COVID19 - INDUSTRY UPDATES

https://www.udiawa.com.au/latest-news/

COVID19 - INDUSTRY ISSUES - 28-5-2020

https://www.udiawa.com.au/blog/industry-issues-28-05-2020/

COVID19 - ARTICLES

https://www.wa.gov.au/organisation/department-of-the-premier-and-cabinet/covid-19-coronavirus-western-australian-government-response

URBAN DEVELOPMENT INSTITUTE OF AUSTRALIA - WESTERN AUSTRALIA DIVISION INCORPORATED

Blog Article - 8th December 2018

https://www.udiawa.com.au/blog/market-cycles-reflect-when-next-uplift-will-occur/

 

WHEN NEXT UPLIFT WILL OCCUR

When discussing property market trends and predicting what is likely to happen in terms of market demand and housing prices moving forward, there is often the assumption the property market is cyclical and if we are in a downward trend, it will move into an upward trend at some point.

Therefore, UDIA’s research team recently undertook an analysis of historical market cycle trends to see if we could more precisely predict the next property market upswing.

The team analysed Australian Bureau of Statistics (ABS) data on Western Australian dwelling commencements, building approvals and dwelling finance commitments over the last 30 years to get a true picture of how the current market downturn compares with previous market cycles.

The research found market cycles in WA have spanned between 4.5 to 8.75 years, with an average of five years from ‘trough to trough’ over the last 30 years.

What this tells us is, while the current downturn has extended for longer than many might have expected, it sits well within the average time range of historical market cycles.

Along with looking at the property market indicators, UDIA tracked the historical impact of mining exploration expenditure on dwelling commencement figures.

This showed there had been a distinct two year lag between an upturn in mineral exploration expenditure and a corresponding uplift in dwelling commencement figures in WA over the last 30 years. Therefore, based on current mineral exploration expenditure figures, we would estimate the next market upswing will occur within the next 12 months.

We can also predict the next peak in dwelling commencements across the state is likely to occur between mid-2020 and 2022.

It is very useful to have solid evidence indicating where we can expect the market to move in the coming months and years.

Anticipating the next upturn is extremely important to the state, given the health of the property industry is critical to the broader strength of the WA economy due to the significant contribution it makes to Gross State Product (GSP) and employment.

In fact, the construction industry makes up close to 13 per cent of our GSP and helps to sustain 224,500 jobs across the state.

Given all of this, UDIA would like to see government policy at all levels supporting the recovery in the property market to ensure our state’s continued prosperity.

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