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.
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Rick Adlam [HomeMate] has been working in the homebuilding since 1985 as a new home consultant with Iconic builder AV Jennings. He has also worked in home design consultancy with Dixon Homes, VillaWorld, Galaxy Homes, Merlin Homes, Simonds Homes, Award Homes and Orbit Homes. Rick currently consults in the development of Mr Mortgage for mortgage brokers and HomeMate for new home buyers
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