First home bonus welcomed in South Australia

South Australians who have been considering a property purchase may be encouraged by a recent announcement from the state government.

Officials have allocated a first home bonus for new residential construction as part of the state annual budget in an effort to support growth and help residents take the next step toward real estate ownership.

The $8,000 offering could be in addition to the federal first home bonus of $7,000 - giving first time buyers a potential kitty of $15,000.

An official cash rate cut of 25 basis points introduced by the Reserve Bank of Australia may also contribute toward favourable buying conditions if lenders follow suit with interest rate reductions.

The Housing Industry Association (HIA) welcomes the first home bonus but has suggested other policy changes to support further improvement in the industry.

Stamp duty is one of the main concerns of HIA due to the 'excessive' amounts it costs buyers.

HIA suggests stamp duty reductions to help spur activity, as the residential construction industry in one of the main drivers of South Australia's economy and is vital in the areas of employment and state services.