Media Release by The Hon Tanya Pibersek MP

Stimulus delivers 2,000 additional homes for private market

Tanya Plibersek today announced that an additional 2,000 private sector homes will be built across the country as a result of the Nation Building Economic Stimulus Plan.

Ms Plibersek said Government programs such as the social housing initiative and National Rental Affordability Scheme are allowing developers to gain sufficient pre-sales to unlock finance for projects.

This brings forward the construction of additional residential construction further boosting Australia’s housing stock.

“When we designed the social housing program we required the States and Territories to out to industry and look for projects that had stalled and were suitable for social housing,” Ms Plibersek said.

“We wanted to restart projects that were having difficulty getting finance by allowing them to sell some of their stock as social housing – effectively a form of pre-sales.

“We anticipated that by selling a few homes as social housing, builders could then get finance on the rest of their development and build more houses that could be sold to first home buyers and others in the private market.

“I am pleased to announce today that we estimate an additional 2,000 private sector homes will be built across the country as a result. That’s 2000 private sector dwellings on top of the new homes already being added to the stock of social housing.

“By stimulating local construction, the Rudd Government’s investment in social housing is also helping to make private housing developments feasible.”

The Government’s Nation Building Economic Stimulus Plan includes the largest investment in social housing ever undertaken by an Australian Government.

The Rudd Government acted early and decisively to provide stimulus to the building and construction sector – first through the First Home Owners Boost and then the increase to social housing.

“The stimulus spending has had a positive impact on construction jobs,” Ms Plibersek said.

“This is an outstanding result that means more jobs for builders and tradies and also improves housing supply.”