WA’s State Government announced a $5.6 billion iron ore mine for the Pilbara Region, and combined with an increase in the First Home Buyer’s Grant, bringing the grant to $15,000, WA’s property market may have just the stimulus it needs to strengthen again.
Perth-based Nicheliving, a real estate and property management company director Ronnie Elhaj said the $15,000 grant would provide the WA real estate market with the much-needed boost especially in the affordable homes and land sectors.
“WA’s economy is amid a transitional phase, yet despite the current economic climate, construction sits second, behind mining, in holding percentage shares of the WA economy,” said Elhaj.
Given the concentration of industry in those two sectors, the news of home buying stimulus and a State-Agreement for the Pilbara iron ore mine is like a double silver lining for the property market.
There is an important caveat in relation to the grant increase, though in that it only applies to new home builds. Some industry professionals are airing out concerns over the increase, which starts Jan 1, 2018, believing that the established homes would suffer.
Elhaj said similar incentives should also be offered for the purchase of established properties. He advised potential buyers who were interested in buying established homes, to purchase them, prior to the commencement of the grant.
“With a firm focus on the sizeable first home owner grant, attention and competition within the established home market aren’t as fierce, providing favourable conditions for the savvy second or investment buyer.
Ehraj also pointed out that the grant would create more opportunities among construction workers as the grant will spur a lot of growth in the property building sector as well.
The construction industry is set to gain from the creation of up to 3,000 jobs at a when the job market in the state has been at a disheartening low.