Builders around the region are being swamped by prospective homebuilders scrambling to access up to $40,000 in government grants.

Contracts for new builds need to be finalised in the next two months, leading to an avalanche of inquiries for building companies.

New home builders can access the Federal Government’s significant HomeBuilder stimulus package of $25,000, in conjunction with the existing $15,000 State Government first home buyers’ incentive.

The news comes as South Australia’s housing and construction industry prepares for a “tsunami” of building activity over the next nine to 12 months, with more than 1100 applications for the $25,000 HomeBuilder Grant received by the state government.

However, according to the Master Builders Association of South Australia, the number of preliminary agreements for the HomeBuilder Grant, which expires on December 31, is much higher.

Blue Lake Homes General Manager Jacinta Jones said the grants had been a fantastic shot in the arm for the local construction industry.

“This is a great opportunity for first home buyers especially, to get into the market with $40,000 available to them, that has been brilliant,” she said.

“Obviously there is $25,000 for everyone, that element has encouraged people who were thinking about building but also potentially enabled them to build faster than they thought they could.

“It has certainly increased our numbers significantly for the year, the traffic has increased 100%, it’s been a substantial increase.”

Mrs Jones said the grants had also proved a huge boost for local trades people.

“The other element is for trade, at a time especially during COVID where there was such uncertainty about their work, it’s great to give that security,” she said.

“The only downside that has come from it, there are only so many trades in regional areas that we can get to do that work.

“It would be great if the government extended the timeframe out to allow for that, especially in regional areas where there are not as many trades available.”

Mrs Jones said Blue Lake Homes had almost filled its work quota, with 2021 looking exceptionally busy.

“The contracts have to be signed by December 31, at the moment work has to start within three months, there is obviously a fairly short time frame to get started,” she said.

“The majority of builders in town are at their limit.

“Obviously the work needs to start within the three months, so there will be a lot of slabs starting to make sure people can get the grant.

“We are doing whatever we can to allow as many people to get the grant. Victoria has been extended out for six months so they have more time, that has allowed us to accommodate more people locally.”

Willow Financial Services managing director Tanya Coxon said the building demand had flowed into the home lending sector.

“The increase has been significant for us – especially in the early days,”

she said. “It has petered off a little now butthe demand is still there. We are hoping for an extension to the dates as builders cannot fit anyone else in due to the looming date.”

Ms Coxon said those seeking finance spanned all demographics, from first home builders, to those wanting to upgrade their existing home.

She said lending approval wait times had blown out. “It really depends on the client’s situation and if they need a quick turnaround, or if they are wanting their lending through a big four bank,” she said.

“Most banks are not allowing for the build grant to be included and need to show they are in a position to continue if they do not get the grant funds.

That is why we are good to see as we take into consideration all aspects.

“At the moment you are probably looking at least two months for approval for some lenders – but then there are others we can get done in a couple of days … again it depends on the circumstance.”

Ms Coxon said the grant stimulus would have a far reaching and beneficial impact on the local region.

“In speaking to some builders they have said they are booked out now a couple of years in advance – which will be great for the industry and also the town.”

South Australian Treasurer Rob Lucas has written to federal Minister for Housing and Assistant Treasurer Michael Sukkar seeking a blanket extension to the stimulus program.