Stimulus creates oversupply of homes

Original article by Patrick Commins
The Australian – Page: 4 : 25-Aug-21

Tim Toohey of Yarra Capital says the take-up rate of the federal government’s HomeBuilder scheme was more than four times higher than expected. He says that together with state-based incentives, this will result in an oversupply of new housing by 2023. Toohey adds that there is also a good chance that house prices will fall over the next two years. The government received more than 99,000 applications to build a new home via the scheme, as well as some 22,000 applications to undertake renovations on an existing home.

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YARRA CAPITAL PARTNERS PTY LTD

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