REA Group attributes surge in enquiries to HomeBuilder scheme

by Madison Utley08 Jul 2020

Realestate.com.au has reported a surge in enquiries for new developments since early June, a spike in activity it has linked to the announcement of the government’s HomeBuilder scheme.

Nationally, enquiries to developers jumped by more than 60% over the month, while land estate enquiries experienced a concurrent lift of 93%, according to the REA Insights New Homes Snapshot for July.

However, the June spike was preceded by a 53.9% increase in May, suggesting the launch of HomeBuilder contributed to the already increasing interest in new properties.

“I expect to continue seeing high levels of enquiry to developers as buyers look to capitalise on government incentives and historic low borrowing costs that are currently available,” said Cameron Kusher, REA Group executive manager of economic research.

“First home buyer activity increased 28.5% in June when looking specifically at email enquiry on realestate.com.au, and it’s likely some of this activity was a result of the HomeBuilder stimulus announcement.

“It’s no surprise that land estate new development is benefiting from HomeBuilder given the package is geared towards new builds, there are restrictions on construction timeframes that inhibit apartment development, and the Australian dream is to own a house.”

There has also been a notable increase in enquiries at Tarneit-based development, Orchard, which was recently revealed as Victoria’s most popular house and land development, according to Michael Ching, Dahua Group’s marketing and sales manager.

“The interest and enquiries on Orchard Tarneit through realestate.com.au have been very strong over the last few months. As a maturing estate, Orchard Tarneit has a variety of land lots to offer including titled lots which fit perfectly into the HomeBuilder scheme,” he said.

“The announcement of the HomeBuilder scheme saw enquiries in Orchard Tarneit increase by 200% in June as compared to enquiries recorded in May.”

As a result, the group has released more land lots to cater to the increased demand.