Developer calls on Victorian government for additional stimulus as projects progress across Australia

A major Australian developer is calling on the Victorian government for a cash stimulus to counteract the impact of second-wave lockdown measures.

Cedar Woods Properties wants the Andrews government to introduce a grant for new-home buyers similar to the $20,000 Building Bonus grant introduced by the West Australian government in June.

“We’d like to see some Victorian state-based additional stimulus as we’ve seen in Perth,” said Cedar Woods state manager Lloyd Collins.

“I think there’s a good case for it and we would certainly like to see it. The construction industry in Victoria is very important and has lots of knock-on effects for the wider economy.”

In June the company, with 34 projects in progress or in the pipeline, reported a 200 per cent increase in inquiries in Western Australia, 100 per cent rises respectively in Queensland and South Australia, but a decrease in Victoria.

A Victorian government spokesperson wouldn’t be drawn on the question of cash bonuses for home buyers, but said there were already funding packages for the industry and substantial incentives for first-home buyers.

“The Victorian government is already backing the building and construction industry with our Building Works program getting shovels in the ground on thousands of projects, and our dedicated taskforce to keep the building and development industry running through the crisis, the Building Victoria Recovery Taskforce,” he said.

“We also offer significant first home owner grants and stamp duty concessions, including for young Victorians wanting to buy their first home, where we have abolished stamp duty altogether on first homes valued under $600,000, with concessions for homes up to $750,000.”

Despite lockdown laws presenting obvious hurdles, along with other developers Cedar Woods is pushing ahead with its Melbourne projects, including 130 new apartments at Jackson Green in Clayton.

Willow, an upscale apartment project in Brighton, launched at the beginning of July – just days before second-wave lockdown restrictions were announced.

Romy Jackson, development manager at Samuel Property, said there was never any question of the Brighton complex being put on hold.

“When all the COVID stuff hit, we pretty quickly decided that we couldn’t afford to pause or stop or slow down in any way with anything we were doing, so we just stuck to all of the plans we had in place,” he said.

“We had to change up things a bit with COVID and it was definitely a bit tricky at the beginning when everyone was adapting at home.

“But the engagement online has been massive and we’re receiving two to three inquiries each day.”

It’s also business as usual for Icon Developments with construction set to start next month on Inkerman & Nelson, a 26-townhome project in Balaclava.

Scott Jarzynka, commercial director, said the coronavirus pandemic had driven the company to be more flexible and innovative with how they interacted with customers.

“We’ve had to be nimble and flexible with how our agents show the space, but our display suite is still open by appointment and active on site so that’s been helpful,” he said.

“We’ve had a number of sales, even at the beginning of this month, so we’re over 75 per cent sold and we’re confident that we’ll sell out.”

Elsewhere, fears of further lockdowns in Sydney were starting to take their toll.

Allam Homes spokesman Rodney Smith said while sales had remained strong, the possibility of another lockdown couldn’t be ignored.

“At this stage there are no identified impacts on our operations in Sydney, although there is an increasing awareness that a second lockdown may happen and this is starting to affect the confidence in the market,” he said.

The developer and builder, with estates across Sydney, the Central Coast, Hunter Valley and South Coast, saw a bounce-back in sales in June after a slowdown in March and April, said Smith.

Sydney-based luxury apartment developer Crown Group will launch its first Brisbane development in September, 2021 and is preparing for buyers to check it out either in person or online.

“It gives us time to respond to market movements and any further changes in restrictions,” said Crown Group’s Queensland development director Trent McLauchlan.

The 1.25-hectare West End development will include a mix of terrace homes and apartments, with a range of facilities including a 25-metre pool, gym, community room and spaces for yoga.

“We are confident that buyers will be very receptive to new product on the market and that they will either flock in to visit our display or be able to enjoy our online interactive property tours and 360-degree videos,” said McLauchlan.