The Urban Taskforce Australia today commented on Australian Beaureua of Statistics (ABS) findings that Victoria is leading the way in new home approvals, ahead of Queensland and New South Wales.

Urban Taskforce chief executive, Aaron Gadiel, says the findings suggest the state shows signs of recovery, while NSW and Queensland remain unsteady.

“Unlike NSW and Queensland, Victoria is experiencing a relatively shallow dip in new home development,” he said.

In February the NSW trend estimate for total new homes dropped by 4.3 per cent, Queensland by 7.7 per cent (more than halving in the last 16 months), while Victoria has seen a positive growth of 1.1 per cent – bucking the trend.

This is a boost for the state which had experienced a 12 percent fall over the six month before February.

Gadiel puts the results down to Victoria’s generous first home buyers scheme – offering up to $29,000 for regional new homes and $26,000 for metropolitan new builds.

“As a proportion of home prices, Victoria has given a bigger boost to first home buyers than NSW – where the grant is just $24,000 for new homes.

“In Queensland the grant is $21,000 for new homes,” Gadiel said.

Gadiel is calling upon the federal Government expand the Australian Business Investment Partnership to include majpor residential development projects and to extend the $21,000 grant for new homes beyond June.

“The good news is that the seeds of a strong recovery have already been sown,” he said.

“State government and local councils need to swiftly process development applications and give developers as much certainty as possible.”

urbantaskforce.com.au