Increasing numbers of South Australians are achieving the great Australian dream of home ownership, with the number of First Home Owner Grants paid so far this financial year at its highest level in five years.
In the first three months (July, August and September) of 2019-20, a total of 887 individuals or couples were paid the First Home Owner Grant of up to $15,000 – a 17% increase on the same period the year prior (760), and a 31% jump on 2017-18 (677).
It’s the biggest surge in the number of First Home Owner Grants for the start of a financial year since mid-2014 – and represents more than $13.3 million in financial assistance to help young home buyers entering the property market.
Munno Para and Mount Barker are the most popular places for new first home buyers, followed by Lightsview, Northgate and Clearview, the Adelaide CBD, Seaford and Salisbury.
Treasurer Rob Lucas welcomed the results as a “great boon for the SA economy, construction industry and young people alike” and reflected the strength of the local residential property market.
The First Home Owner Grant – of up to $15,000 – applies to the purchase or construction of a new residential property, including a house, flat, unit, townhouse or apartment that meets local planning standards anywhere in South Australia.
“The Government is delighted that so many first home buyers – many of them young couples and individuals just starting out – have the confidence and means to enter the property market and secure their own special slice of Australia,” Mr Lucas said.
“At a time when the Property Council and its supporters are desperately trying to talk down the economy, these results show there is significant underlying confidence and strength in the market here.
“In the past week, independent analysis by national market leaders (Domain Group and national valuer Herron Todd White) have also heralded Adelaide’s residential property market as a rising star, outperforming many of the nation’s capital cities for stability and sustained growth.
“Our proposed land tax reform will further enhance this investment attraction, by reducing the top land tax rate from a national high 3.7% to 2.4%, driving our competitiveness and boosting business and consumer confidence.”
The First Home Owner Grant ceased for established homes from 1 July 2014.
The residential property must be occupied as each applicants’ principal place of residence for a continuous period of at least six months commencing within 12 months of date of settlement for contracts to purchase, or the date construction is completed for owner builders or contracts to build.
Last financial year, there was a total of $42.25 million in First Home Owner Grants paid in South Australia.
Top 10 postcodes for the First Home Owner Grant (2019-20)
- 5115 (60) – Munno Para area
- 5251 (57) – Mount Barker area
- 5085 (48) – Lightsview/Northgate/Clearview/Enfield area
- 5000 (43) – Adelaide
- 5169 (30) – Seaford Meadows/Moana area
- 5108 (29) – Paralowie, Salisbury area
- 5114 (26) – Craigmore/Blakeview/Andrews Farm
- 5074 (23) – Campbelltown/Newton
- 5501 (21) – Two wells/Port Gawler area
5120, 5121, 5043 (19 each) – Buckland Park/Virginia
– Penfield Gardens, MacDonald Park
– Morphettville, Marion, Mitchell Park area