The revitalised scheme will now look to boost construction jobs comes as the Home Builder scheme, available to buyers who enter into a building contract by December 31—if construction commences within three months. winds down.
Record-low lending rates and strong levels of federal and state grants to encourage new home construction looks also set to push demand for housing credit in states where the virus is seen to come under control and movement and other restrictions lift.
“The risk is more debt, higher than otherwise prices, and a potential oversupply in the face of the hit to immigration,” AMP Capital chief economist Shane Oliver said.
“Like Home Builder, it does distract buying from established property and could boost new home prices at expense of established homes.”
The extension follows recent findings from the National Housing Finance and Investment Commission, the scheme administrator, which predicts housing demand could fall by up to 230,000 dwellings over the next three years, due to boarder restrictions.
Unemployment hit 6.8 per cent nationally in August, with the three hardest-hit states being SA, Queensland and Victoria, and youth unemployment sitting on 14.3 per cent.
The Australian economy contracted by 7 per cent in the June quarter, confirming the nation was in recession following the 0.3 per cent decline in the March quarter.
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