This week’s positive GDP data has highlighted why it was necessary for the Federal Government to introduce the HomeBuilder program in June, according to the HIA. Residential building activity during the September quarter was 13.0% lower than the same period in 2019 and HIA economist Angela Lillicrap believes this data reflected the impact of the COVID-19 restrictions throughout the first half of the year. Source: Timberbiz
But she said that this does not yet reflect the positive impact of HomeBuilder on the market.
“Due to the lead time between purchasing a house and commencing construction, the first impacts of HomeBuilder are likely to be seen in the December quarter GDP results,” she said.
“HomeBuilder has been the catalyst for improving consumer confidence in the housing market. Leading indicators show that the detached housing market has picked up since June with record monthly levels of building approvals and housing finance data recorded in recent months.’’
In other positive news, renovations activity picked up in the September quarter to be 2.3% higher than the same time last year.
“Many households have diverted funds that would typically be spent on holidays and eating out and put them towards improving their homes,” Ms Lillicrap said.
“It is evident from other leading indicators that HomeBuilder has been successful in creating work on the ground in the December quarter and will protect jobs across the economy.”
