New First Home Buyers incentive hurts second home buyers.
Queensland general manager of Brisbane-based developer Devine Homes, Paul Nash, said second-home buyer demand has been sluggish, but when the $21,000 first-home owner’s grant was introduced in October, there was a pickup in first-home owner inquiry.
First Home buyers charge petering out
“We had a spike, but the activity was flat in November and December,” he said. “As a result, the company has been making its lots and housing designs smaller and more affordable, to focus more on the first home buyer.
” We are offering to top up the first home owners grant. We will make up the extra from the $21,000 to take it to about $30,000,” Mr Nash said.
Chris Lamont from the Housing Industry Association said there were other developers offering similar discounts, which was a popular move by developers when GST was being introduced about nine years ago.
Mr Nash said in the past year, first-home buyer sales had doubled from about one-third to about two-thirds of the company’s business.
Three-bedroom houses started in price at $299,000 in Caboolture in Brisbane’s western corridor, while prices started at about $219,000 in Pakenham on the outskirts of Melbourne and $209,000 in South Australia about 30km north of Adelaide CBD.
