First-home buyers have flocked to new developments in south-east Queensland, with or without government incentives, property developers and sales agents report.
The keen interest comes despite the economic burden of the coronavirus pandemic, with Brisbane’s broader housing market so far defying the gloom. Established home values in Brisbane rose 0.5 per cent in September, the latest CoreLogic figures show.
Under the First Home Owners’ Grant and HomeBuilder grant, buyers can receive a total of $40,000 towards their first home for properties valued at $750,000 or less, subject to eligibility criteria.
But even completed and off-the-plan projects that aren’t eligible have seen substantial interest from the keen demographic.
A lack of competition from investors due to the COVID-19-related recession is behind the trend, those in the industry say, along with changing buyer behaviour.
First-home buyers now comprise about 50 per cent of sales for some developments, up from an estimated 20 per cent before the pandemic, TOTAL Property Group managing director Adrian Parsons said.
“The first-home buyer has become one of the largest buyer segments, which we’ve never seen before,” he said.
“We’ve noticed it very much in completed apartment buildings where the HomeBuilder grant does not apply.
“It’s hard to really understand exactly what is making these first-time buyers actually take action, but I have to think that it’s finally hitting home about how affordable a first time home is with the current level of interest rates.”
Mr Parsons said coronavirus-related lockdowns might have also led buyers to reassess their finances and housing situation.
“I think people have assessed, ‘Well, if I’m locked down and I’m in this property, am I happy being locked down in this property, or should we actually think about buying our own property, where it’s ours?’” he said.
“We’re definitely seeing the very positive flow-on effects of people being unable to travel and spend their discretionary income in other areas.”
Originally published by Anna Levy in Domain.com.au HERE.