Victorian first-home buyers receive $60,000 discount,
Victoria’s largest developer is reducing the price of house and land packages by $60,000 for first-home buyers.
This initiative aims to alleviate the state’s ongoing housing crisis and encourage more individuals to enter the market.
Stockland will decrease the price of land by $40,000. Furthermore, they are collaborating with builders like Simonds and Henley Homes.
Additionally, Metricon and Homebuyers Centre are offering a further $20,000 discount on construction costs for aspiring homeowners in Victoria.
This promotion arises as Victoria’s housing market struggles to meet the government’s ambitious target of constructing 80,000 new homes annually.
Australian Bureau of Statistics data released last week reveals that 4,589 new homes and units were approved for construction in Victoria.
This represents a decrease of approximately 140 approvals, which is a 3 percent decline from the previous month.
At this current rate, the state is projected to approve only 55,000 new homes over the next 12 months.
This figure is significantly lower than the 80,000 target outlined in the Victorian Housing Statement issued in 2023.
Although the ABS data indicates an increase in house approvals recently, there has been a decline in unit approvals.
Consequently, developers are actively seeking to boost sales in newly established estates throughout the region.
David Allington, the general manager of Stockland Victorian communities, highlighted the benefits of the discount for potential buyers.
He mentioned that, combined with the state government’s $10,000 First Home Owner Grant, buyers would receive a total of $70,000 in assistance.
The initiative will apply to over 100 house and land packages in the developer’s Victorian communities.
Prices for these packages will range from the low $400,000s to $650,000, with most priced in the middle.
Homes will vary in size, offering two to four bedrooms; most will be single-storey to ensure completion by next Christmas.
Approximately 50 percent of inquiries received by Stockland come from potential first-home buyers; however, only a quarter are actual purchasers.
Mr. Allington noted this discrepancy indicates that deposits and borrowing capacity are significant challenges for new buyers in Victoria.
He described this situation as making Victoria an “outlier” compared to other regions in the nation.
“There’s still a will, and a need, for home ownership,” Mr. Allington stated, emphasizing the need for assistance.
He also mentioned that the state’s fundamentals remain strong, with robust population growth and employment opportunities present.
Furthermore, the $60,000 offer aims to encourage the construction of more homes, addressing the core issue of Victoria’s housing crisis.
This crisis is primarily due to the insufficient number of available residences in the current market.
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However, land sales experts believe this is just the beginning of a trend.
RPM Real Estate director Luke Kelly noted that discounts of about 7 percent are becoming increasingly common in Melbourne and Geelong.
In most cases, these discounts amount to approximately $25,000 off the total cost of a housing package.
Mr. Kelly suggested that these discounts are likely to continue over the next year.
However, he cautioned that they may not remain as high as $60,000 if the Reserve Bank lowers borrowing costs.
Leanne Pilkington, president of the Real Estate Institute of Australia, stated that supply remains a key topic in housing discussions.
She described the Stockland offer as “fantastic news” and highlighted the private sector’s potential role in providing solutions.
Cameron Kusher, executive director of PropTrack economic research, emphasized that first-home buyers require significant assistance in today’s market.
“First-home buyers are feeling the pressure of rising interest rates and the increasing cost of living,” Mr. Kusher remarked.
He concluded that they can truly benefit from additional support to help achieve their home ownership dreams.
