Approvals data and government package promising for region New homes increasing
FOR the first time in nearly a decade, Townsville has reported an increase in new home approvals, according to figures just released.
The Knight Frank Developer Land Summary has coincided with the Federal Government’s new Home Builder Stimulus Package in response to COVID-19.
The building incentive offers a rebate of $25,000 for new homes up to $750,000, or renovations of more than $150,000.
Sitting building approvals since May, the quarterly report showed Townsville has already surpassed building approvals for the financial year 2018-19, which had a total of 373.
Knight Frank Townsville and Mackay’s head of valuation and advisory Matthew Ryan said the figures were promising for the region.
He said land sales also showed signs of improvement with the March 2020 quarter recording 88 sales and the year ending March 2020 reflecting 5 per cent annual growth in recorded sales volume.
“Although the increase is modest and we still remain below the 20-year average of 90 approvals per calendar month, this is the first year since financial year 2011-2012 that the region has seen an upward trend.”
The full extent of COVID-19 on the building industry is yet to be seen but Townsville-based builder Martin Locke said the Government incentive would provide an immediate boost for the industry.
He urged homeowners to consider designing fully accessible homes in order to future proof them.
“We’re advocating that individuals and builders taking advantage of the stimulus package strongly consider designing and building to a minimum standard of accessibility,” he said.
“As new-home builders we must adapt to address the growth of our ageing population as well those with specific accessibility needs.
“The old, or traditional way building just doesn’t do that.”
Knight Frank head of projects for of
Townsville Andrew Forster said The Village in Oonoonba and Bluewattle in Rasmussen sites had already had a spike in inquiries in response to the stimulus package.
He noted some people would also be eligible for the State Government’s $15,000 First Home Owners’ Grant.
“We have seen long-term renters in stable employment looking to take advantage of the perfect storm of First Home Buyer grant, the Homebuilder Stimulus and low interest rates.”
With the cost per square metre for vacant land averaging $300 for the March 2020 quarter, Mr Ryan said the latest COVID-19 incentive would likely result in increased building activity in Townsville exceeding capital cities due to the slower market increase to land pricing.