First buyers `rush to build dream home`

The federal government's more generous first home owners grant scheme has been a
"success" and is helping keep construction workers employed, Housing Minister Tanya
Plibersek says.
Data released on Thursday backed the claim, with housing finance loans to build new
homes surging 15.4 per cent in March to a record high.
Overall, new lending commitments for housing, personal, commercial and lease finance
jumped 12 per cent in March, the biggest rise in 21 months, Australian Bureau of
Statistics data showed.
"Vacant blocks of land are being snapped up," Commonwealth Securities chief
economist Craig James said.
"More home buyers are looking to build their dream home than buy an existing dwelling."
In just seven months, loans to build new homes have risen by 42 per cent to record
highs, he said.
The boost to the first home buyers scheme, which was introduced as part of the
government's stimulus package announced in October, was extended in Tuesday's
budget.
"It has been one of the very important measures in both the stimulus packages and in
the budget," Ms Plibersek told parliament.
She said it was helping to prevent 210,000 Australians from joining the ranks of the
unemployed.
So far, 59,000 new Australians had claimed the increased grant.
"Many more had signed contracts to build homes and would claim the boost once their
home was complete," she said.
The grant was doubled to $14,000 for existing homes and trebled to $21,000 for new
properties in October and was initially due to end on June 30.
However, the boost was extended in the budget and will continue in its current form
until the end of September.
The grants will then be lowered to $10,500 for existing homes and $14,000 for new
homes for a further three months.
Beyond December it will return to $7,000 for both categories.
Other gauges of housing finance show the number of new loans written to first home
buyers has doubled to 17,700 since August last year and now make up a record 27 per
cent of all home loans granted.
Building approvals had also risen in the past three months after a major decline in
the previous year, Ms Plibersek said.
"If recent enthusiasm to buy and build is any guide, the home construction sector
will be at the forefront of the economic recovery," Mr James said.
"The rental market has been super tight for a number of years, but finally supply is
catching up to the latest demand."