By Luke Voogt
The doubled First Home Owners Grant has driven record Geelong house sales during the last quarter, according to a prominent local builder.
Armstrong Creek development Warralily recorded a 32 per cent rise during the last three months, said director Mark Casey.
“Our last quarter has been a record,” he said.
“Our sales have increased dramatically over the last three months with the $20,000 regional First Home Owner Grant.”
Mr Casey said other developers were experiencing a similar boom in sales.
Warralily’s rivals had sold out or recorded at least 15 per cent increases according to the company’s competition activity reports, he said.
The combination of the grant, stamp duty reductions and rising prices in Melbourne had made buying Geelong “a really attractive proposition,” Mr Casey said.
Prices had risen by up to $120,000 in Melbourne growth corridors in the past nine months, compared to $35,000 in Geelong, he said.
“The Melbourne market’s been hot and Geelong’s playing catch up – it’s made Geelong a very affordable.”
The opening of two public schools and shopping precinct in the area would help increase sales, Mr Casey said.
Local builder Enso Homes also recorded a record quarter, an increase director Lee Selkrig said could be partially due to the grant.
“We’ve hit a record quarter every quarter we’ve been in existence.”
But he had noticed a definite increase in first home buyers who he said had more confidence and money to buy because of the grant.
“It’s brought some excitement and motivation to the table.”
The State Government this year introduced a $20,000 First Home Owners Grant (FHOG) for regional Victoria, which it expected to deliver $120 million in assistance during 2017-18.
The government also abolished stamp duty on all homes up to $600,000 and cut stamp duty on homes valued up to $750,000 for first home buyers.
The changes would allow 6000 people to purchase their first house, boost local construction jobs and encourage people to move to regional Victoria, Treasurer Tim Pallas said.
“These important reforms are a win for thousands of Victorians, allowing businesses to grow and create jobs, while delivering thousands of dollars in stamp duty relief for first home buyers.”
The government also abolished off-the-plan stamp duty concessions for investment properties to further level the playing field for first home buyers, Mr Pallas said.
