HOUSING ASSISTANCE GRANTS

The Hon. S.W. KEY (Ashford) (14:39): My question is directed to the Premier. Can the Premier advise the house with regard to the uptake of housing assistance grants offered by the government?

The Hon. J.W. WEATHERILL (Cheltenham—Premier, Treasurer, Minister for State Development, Minister for the Public Sector, Minister for the Arts) (14:39): I thank the honourable member for her question. I note her long-term passion for the housing sector. Following several periods of strong growth in the previous decade, the South Australian housing construction sector experienced a significant fall in housing construction activity from mid-2010, with annualised dwelling commencements as at the September quarter 2012 being 35 per cent lower than two years earlier.

The government recognises that the construction industry, including the housing construction industry, is a fundamental element of the state's economy, employing more than 60,000 South Australians while playing a critical role in triggering further growth opportunities in other sectors.

In October 2012, the government took decisive action in response to this weaker outlook in the local housing sector. As well as increasing the existing First Home Owner Grant for new homes from $7,000 to $15,000, the government also introduced an $8,500 Housing Construction Grant for all eligible buyers of a new home valued up to $400,000, phasing out for properties valued at $450,000.

Since being introduced, these measures have provided a much needed boost to the state's housing construction industry and have helped to stimulate the property sector. A total of 3,477 Housing Construction Grants have been provided to new home buyers at a total value of around $28 million. The number of grants paid has increased significantly on a month-to-month basis, so far peaking in July 2013, with strong uptake continuing since that time.

Since changes to the First Home Owner Grant were simultaneously introduced in October 2012, there has been a 15 per cent increase in the number of grants provided by the government for buyers of both new and established homes. Since the government introduced its housing assistance package this time last year, the outlook for the local housing sector has shown some very positive signs of rebounding. Trend new dwelling approvals in South Australia have been rising continuously for the past 14 months, increasing 25 per cent from August 2012-13, annual growth second only to Western Australia.

The trend number of housing finance commitments by owner occupiers in the state has been rising for nine consecutive months, growing 16 per cent from August 2012-13, the highest annual growth in the country. Trend dwelling unit commencements in South Australia have been rising for four consecutive quarters and are now 17 per cent above the low point reached in the June quarter 2012.

The government's response to the difficulties in the housing sector has had a positive impact on the state's housing and construction sector. At the same time, I also appreciate that there remains a number of challenges to ensuring that we continue to see sustained levels of growth in this area.

As announced today, we have expanded the off-the-plan concession to those newly zoned inner urban areas, and that is available immediately for anyone wanting to purchase an apartment off the plan. As we have acted to date, I can assure the house that this government will continue to work collaboratively with the private sector and with industry members as well as the wider community, because we understand that this sector is such an important part of our economy.