DEMAND SURGES AFTER FIRST HOME BUYERS' GRANT BOOST
4 October 2016,
FIRST home buyers have moved quickly to take advantage of the Queensland Government's $5,000 increase to the First Home Owners' Grant to $20,000, says Colliers International.
Since the boost was implemented on 1 July, Colliers has experienced an increase of 74 per cent in enquiry and a 23 per cent increase in sales from first home buyers across 20 residential communities and 6,500 lots it is marketing in South East Queensland.
"Last time the Government announced a one-off boost was in 2009, when the grant was increased by 50 per cent to $21,000. In proportion with this increase there was a direct 50 per cent jump in sales of vacant land in South East Queensland over the 12-month period," says Clinton Trezise, Associate Director of Residential at Colliers International.
"It is very likely we will see a similar result this time around, considering we have already had a 23 per cent increase in sales in the last two months from this buyer group."
The boost ties in with the 100 per cent transfer duty concession on vacant land purchases up to $250,000, and new homes up to $504,999 for first home buyers in Queensland.
"This can save them up to $8,750 when purchasing their first home, so the real benefit for the buyers is close to $29,000 when this concession is being considered," says Trezise.
"The interest has been strong across South East Queensland, from Sunshine Coast to greater Brisbane, Ipswich and the Gold Coast, where we are seeing first home buyers seeking new home and land packages with a broad range of budgets starting from a low $300,000 to $550,000 plus.
"Within the greater Brisbane some of the best opportunities for entry level house and land packages can be found in regions such as the western corridor, Redland Bay and Caboolture," Trezise says.