To alleviate Victoria's housing crisis, Stockland, one of Australia's largest developers, is offering a $40,000 discount to first-time buyers.
In addition, Stockland has partnered with builders such as Simonds, Henley Homes, Metricon and Homebuyers Centre to offer an additional $20,000 in construction fee waivers for Victorian buyers looking to step up the property ladder, according to RealEstate.
The offer comes as the Victorian housing market works to meet the government's target of building 80,000 new homes a year.
(Image source: RealEstate)
Data released by the Australian Bureau of Statistics last week showed that the total number of homes and units approved for construction in Victoria in August was 4,589, a decrease of about 140 units (3%) from the previous month.
At this level, the state is expected to approve only 55,000 new homes over the next 12 months, well below the target of 80,000 units set in the Victorian Housing Statement 2023.
While the number of approved homes has increased over the past month, the number of unit approvals has declined, with developers looking to increase sales through new residential projects.
(Image source: RealEstate)
Stockland Victoria principal David Allington said the discount would provide $70,000 in assistance to potential homebuyers in combination with the state government's $10,000 first-time home buyer grant.
The offer will be available to more than 100 housing and land projects in Victorian neighbourhoods, with prices ranging from $400,000 to $650,000.
Homes range in size from two to four bedrooms, with most of them being single-storey designs to ensure they are completed by Christmas next year.
About 50% of Stockland enquirs are potential first-time buyers, but only a quarter of buyers are actual first-time buyers entering the market.
Mr Allington said this shows that down payment and borrowing ability remain issues for those looking to buy a home in Victoria.
"The willingness and demand to buy a home is still there – they just need some help getting into the market," he said. The $60,000 concession will also encourage more housing construction and help address the lack of housing supply, a core problem of Victoria's housing crisis.
Stockland will review the offer in mid-November.
(Image source: RealEstate)
However, land sales experts believe this is just the beginning, with RPM Real Estate director Luke Kelly pointing out that discounts like around 7% (about $25,000) are becoming more common in property developments in Melbourne and Geelong.
Mr Kelly said the steep $60,000 discount may not last long once the Reserve Bank lowers borrowing costs, but is expected to persist over the next year.