$4 million shot in the wallet for housing

2 August 2000

By Consumer Affairs Reporter Belinda Heggan

More than 550 South Australians have applied successfully for the federal-state First Home Owner Grant, saving themselves almost $4 million.

Another 704 are waiting for their applications to be approved by Revenue SA, according to figures released by the State Government yesterday.

Treasurer Rob Lucas said 558 first home buyers had taken up the combined Federal and State governments' $7000 grant.

According to a Housing Industry Association survey, only about 30 per cent of those were building their own homes.

The grant, introduced on July 1, is intended to compensate for price increases associated with the introduction of the goods and services tax.

It is available to people who are either building a home or buying an established property as long as they have not previously owned a home anywhere in Australia.

"This is an excellent result for the first few weeks and we look forward to it continuing," Mr Lucas said.

"It is obviously good for the housing industry and, with the flow-on effects, very good for the state economy as well."

Real Estate Institute of South Australia president Rosalind Neale said the industry had experienced a rush of inquiries since a lull in June.

"As far as agents are concerned, the level of inquiries they've received (since July 1) have been the best in five years," Ms Neale said.

"Most noticed there was a slowing down in that period in June and the inquiries since have picked up again.

"The only problem now is whether there will be enough properties to satisfy demand."

She said a comparison of sales figures between July, 1999, and July, 2000, could only be made next quarter, once the property settlements were finalised.

Housing Industry Association state director Brenton Gardner said the first home buyer market had almost doubled - from about 20 to 40 per cent of all new dwellings since July 1.

"The first home buyers were really waiting for the $7000 grant to come through before they would sign off on the homes so we expect that to level off over the next few months," he said.