South West land selling quicker than its being released as building bonus sparks frenzy

Land sales and building contracts are surging in the South West off the back of State and Federal government building incentives, with those in the industry comparing it to the “boom days” of 2006, before the global financial crisis. Millions of dollars worth of contracts have been signed or negotiated in the past fortnight, as people – many of whom are first homebuyers – take the plunge into the property market with the helping hand of almost $70,000 in grants and concessions. WA Country Builders regional manager Carrie Anderson said they were looking at a 300 per cent increase in sales for the month. “It’s great for our industry, our clients and our trades – they’ve got a big 12 months ahead of them,” she said. She said there had been a “flurry” of land sales, with blocks – particularly residential blocks in major towns – selling faster than they were becoming available. With the State Government’s $20,000 Building Bonus, the Federal Government’s $25,000 HomeBuilder package, the $10,000 First Home Owner Grant and first home buyer $14,000 stamp duty concession, those eligible for all can receive up to $69,000. Ms Anderson said it had prompted many first homebuyers and low-middle income earners to decide the time to buy and build was now. For local mortgage broker Gary Liebregts, the phone has not stopped ringing, with the five brokers at Smartline receiving upwards of 50 calls a day when it was first announced. ABN Group managing director Dale Alcock said inquiries increased fivefold and display home traffic doubled the week following the announcement, which had translated into an increase in sales across the South West. He said with the amount up for grabs, it was “little wonder” people were jumping at the chance to build. “On this basis, I’m calling on mums and dads to act now and get their kids out of home and building their first home,” he said. “If they’re old enough and have a job, then they should get on with it.” The building boom is also bringing city folk to the country for a tree change. “Those that have owned land in the country for a long time and had a lifestyle change on their radar or were looking to retire in the country have now decided let’s do it now,” Ms Anderson said. Summit Realty real estate agent Tim Cooper said land anywhere between $140,000 and $335,000 had been selling and in the past week and a half he had done nine deals. “It’s been a really healthy surge,” he said. “On the back of COVID, to see the return of activity so strong and so quickly is fantastic.”