May 2020: HomeBuilder is announced — the new-build thesis goes mainstream
$25,000 grants for new builds and substantial renovations. Sky News asked if it was enough. I said it was the start of a multi-year supply story.
The policy
On 4 June 2020 the Morrison Government announced HomeBuilder: a $25,000 tax-free grant for owner-occupiers signing new-build or substantial-renovation contracts before 31 December 2020. The scheme was extended and tapered into 2021. It pulled forward roughly 130,000 new-build contracts.
Why it mattered for investors
HomeBuilder was structured for owner-occupiers but its real impact was on land-developer cash flow. Estates across SE Queensland, Western Sydney and Melbourne's growth corridors sold through inventory in weeks. Investors who moved alongside owner-occupiers — same estates, same builders, smaller lots — locked in 2020 land prices before the 2021 surge.
Dax Stanley
Founder & Principal Strategist, Hera Property. #1 international bestselling author of Real Estate Investing Using ChatGPT.