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The HomeBuilder grant, combined with some major infrastructure projects, is attracting committed buyers to some entry-level markets in Australia’s capital cities, according to Raine & Horne.
The property group said the $25,000 HomeBuilder grant announcement is motivating buyers to seek out affordable home and land packages in new estates. In addition, buyers are mindful of major infrastructure projects such as the Western Sydney Airport or Adelaide’s $745.5 million Darlington Upgrade and their impact on jobs and commute times, it said.
“HomeBuilder is stimulating interest in affordable home and land packages in the new estates such as Austral, Leppington Park, Edmondson Park, Oran Park,” said Peter Ly, co-principal of Raine & Horne Hoxton Park.
“The grant is additional to the stamp duty break for first-timers either building a new home or buying an existing property worth up to $650,000. Stamp duty discounts will also apply to properties worth up to $800,000.
“Also don’t forget suburbs such as Leppington Park and Austral are closer to the future Western Sydney Airport at Badgerys Creek. Having this new $25,000 grant plus the prospect of the new airport is a real bonus for first home buyers.”
Construction of the $11 billion Sydney Metro – Western Sydney Airport rails is set to start this year, which Raine & Horne believes will lock in thousands of jobs and provide a long-term economic boost to the Western Sydney and New South Wales economies.
Meanwhile, in Adelaide’s inner south-west, local property markets such as Kurralta Park are impacted by significant infrastructure projects such as the $383.5 million Torrens to Torrens road project and the massive $745.5 million Darlington Upgrade, the group said.
“These two projects bookend South Road and Kurralta Park [and] is located halfway between these two major projects that make access the Barossa Valley and the Fleurieu Peninsula much easier,” said John Cullen, director of Raine & Horne Kurralta Park.
“The majority of the buying activity in Kurralta Park and surrounding suburbs is between $400,000 and $800,000, with first-time buyers and upgraders leading the charge.
“It’s fair to say that the major infrastructure projects are in the backs of the minds of many savvy buyers as these major road projects will also speed up the door-to-desk commutes to Adelaide CBD.”
Angus Raine, executive chairman, Raine & Horne, added: “Major infrastructure projects such as the Darlington Upgrade or the Sydney Metro – Western Sydney Airport are popular with buyers as they slash the time it takes for them to get from the front door of their homes to their desk each day,” Mr Raine said.
“Long commute times steal many hours a week from the lives of owner-occupiers and tenants, and generally speaking, any infrastructure project that reduces commutes below the 1-hour door-to-desk sweet spot will add to a suburb’s appeal and increase property values.”
Last but not least, parts of Brisbane are also gathering buyer interest, according to Margaret Vote, principal of Raine & Horne Wynnum Manly, who noted that there are more genuine buyers at open homes than before government restrictions were announced in March.
“We have more committed buyers and fewer tyre kickers now than three months ago, especially in the entry-level markets under $600,000.”
For example, a quality three-bedroom house at 220 Sibley Road, Wynnum West, which recently listed for low $500,000s, isn’t expected to last for long.
“It seems more first home buyers and downsizers have recalibrated after COVID-19 and a change of scenery into a new home is on the to-do list. Buyers aren’t jumping in, but they want to move where they want and have their families more settled,” she said.
“I’m feeling positive about the market and believe the next three months will be busy for buyers and vendors.”
ABOUT THE AUTHOR
Emma Ryan
Emma Ryan is the deputy head of editorial at Momentum Media.
Emma has worked for Momentum Media since 2015, and has since been responsible for breaking some of the biggest stories in corporate Australia, including across the legal, mortgages, real estate and wealth industries. In addition, Emma has launched several additional sub-brands and events, driven by a passion to deliver quality and timely content to audiences through multiple platforms.
Email Emma on: Emma.Ryan@momentummedia.
