Tim Toohey of Yarra Capital says the take-up rate of the federal government’s HomeBuilder scheme was more than four times higher than expected. He says that together with state-based incentives, this will result in an oversupply of new housing by 2023.
The government received more than 99,000 applications to build a new home via the scheme, as well as some 22,000 applications to undertake renovations on an existing home. Toohey adds that there is also a good chance that house prices will fall over the next two years:
“Taxpayers have effectively handed out almost $3bn in ‘free money’ to people to build or renovate their home,” Mr Toohey said.
