MOUNT Gambier’s real estate sector is reporting record sales in housing allotments as home-buyers rush to access the Federal Government’s home builder stimulus grants.
More than 20 allotments in just one new housing estate have been sold over the past week, which is fuelling an upturn in the housing sector.
Realtors claim the looming housing construction boom and the significant investing flowing into commercial development will help buffer the region’s economy against a COVID-19 economic meltdown.
First home builders can access a $15,000 State Government grant as well as $25,000 from federal coffers.
Residents who own a house can also potentially access $25,000 for new housing projects, including major renovations.
Gebhardts Real Estate principal Paul Chuck said the response to the stimulus measures had been amazing.
“I have been in real estate for 32 years and I seen a lot of government grants come and go, but I have not seen the interest like this,” Mr Chuck told The Border Watch yesterday.
“I have never seen such high demand for allotments in such a short amount of time.”
Mr Chuck said the skyrocketing interest demonstrated people had long-term confidence in the Mount Gambier market despite the COVID19 economic challenges.
Importantly, he said the looming activity would underpin the city’s construction sector, which supported significant jobs.
“There is also high demand for established houses, which has bounced back after COVID-19,” Mr Chuck said.
He said real agents across Mount Gambier were crying out for listings because buyers were active and supply was low.
“The signs are really positive for our area considering what we have been through – we are in a good part of the world,” he said.
According to the industry, there is also strong interstate inquiry from people considering relocating to the Blue Lake city that include people from Melbourne and Sydney.
Elders Real Estate’s Damian Venn said the Limestone Coast’s diverse industry sector was helping the region ride through the current economic climate.
“There is a lot of commercial activity happening with a number of big projects – that is a good sign. These flow through the economy,” Mr Venn said.
Timberlink Australia, Borg Manufacturing, two OnTheRun projects, Mount Gambier Regional Airport terminal as well as the Coles Supermarket complex are among commercial projects under way.
Mr Venn also cited the looming Mount Gambier Recreational and Community Hub as an important infrastructure project to stimulate the economy.
“The whole picture looks good for our region,” he said.
Mr Venn also revealed rural land prices were continuing to rise despite the difficult economic times.
“Rural land that comes onto the market is selling pretty quickly,” he said.
Limestone Real Estate sales manager Bianca Taylor echoed similar sentiments.
“There has been a huge shift in the amount of land that is moving. The building grant package is encouraging people to build.”
She said existing properties were also selling and there was confidence in the market.
“We are in a bit of a bubble here and not everyone has lost their jobs.
We are affected, but not quite the same as the cities,” Ms Taylor said.
She said people in metropolitan centres faced higher rent and mortgages, which added financial pressure.
Gebhardts Real Estate’s Malcolm Lewis said inquiries were strong for allotments across the city.
“We have been flooded since the federal building program announcement,” Mr Lewis said.
Under the federal grant requirements, Mr Lewis said a building contract needed to be signed by December 31 and the slab laid by March 2021.
He praised Mount Gambier City Council’s development team for fasttracking the development approvals to encourage building activity.
“It is great council has enabled flexibility to get it done as quickly as we can. They have been really proactive in ensuring they do not slow up progress,” Mr Lewis said.
He said 20 blocks in the Springview estate on Mount Gambier’s western fringe had been sold since last Tuesday, with eight occurring in just one day.
Member for Barker Tony Pasin yesterday welcomed news the stimulus package was driving activity in the Mount Gambier district.
“While there was some scepticism about this program when first announced, ultimately, the numbers will speak for themselves,” Mr Pasin said.
“This Federal Government program is about creating jobs and that’s exactly what we’re seeing when we see an upturn in housing block purchases and building contracts.
“In the Limestone Coast this is particularly important not only for the trades that work on new dwellings and extensions but for our local timber industry too.”
HOMEBUILDER CRITERIA
TO ACCESS HOMEBUILDER, OWNER-OCCUPIERS MUST MEET THE FOLLOWING ELIGIBILITY CRITERIA:
• A natural person (not a company or trust)
• Aged 18 years or older
• An Australian citizen
• Meet one of the following two income caps: – $125,000 per annum for an individual applicant – $200,000 per annum for a couple
• Applicants enter into a building contract between June 4, 2020 and December 31, 2020
• Build a new home as a principal place of residence (property does not exceed $750,000)
• Substantially renovate existing home as a principal place of residence (renovation contract is between $150,000 and $750,000) and value of existing property does not exceed $1.5m
• Construction must begin within three months of the contract date
