With cash rate cuts making headlines, there’s another update for first-home buyers. Now, the Queensland Government has extended its $30,000 First Home Owner Grant for another 12 months, which improved first-home buyers’ confidence.
But what was the earlier rate, and why did the government extend it? What’s the current situation in the housing market? And how will it affect the first-home buyers overall?
What Was The Earlier Grant?
The First Home Owner Grant in Queensland was originally set at $15,000. It applied to those who were either building or buying a new home under $750,000.
In November 2023, the government bumped up the grant from $15,000 to $30,000 to help more first-home buyers and give the building sector a boost. This was supposed to end on 30 June 2024.
But now, instead of bringing it back down, the Queensland Government has chosen to keep the $30,000 grant going until 30 June 2025. This means buyers who qualify will continue to receive double the original support, provided they purchase or build a new property under $750,000.
Why Did the Government Extend It?
The primary reason behind this is to give more first-home buyers a better chance at entering the market. Queensland’s homeownership rate sat at 63.5% in 2021, lower than other states like New South Wales (64%), Victoria (68.3%), and Tasmania (70.2%).
Also, as per the government, the grant extension can be a step towards improving that figure. However, experts are saying that this will eventually benefit the construction industry and not the buyers.
That’s because the grant applies only to new properties, and many see it as a move to improve building activity rather than address broader affordability challenges.
What’s The Current Housing Situation?
This is where the situation is getting worse. While the grant sounds generous, finding a new home under $750k isn’t easy, especially in major hubs. In places like Brisbane, the Gold Coast, and the Sunshine Coast, listings that qualify for the grant are extremely limited.
In contrast, some options still exist, but in outer areas, like Logan City or the regional parts of Queensland. However, there, as well, the land prices are climbing.
Research says that the median price of residential land reached $369,530 in 2024, which is very high. At the same time, land sales also dropped to a record low, mainly due to limited supply and planning delays.
What Does It Mean For First-Home Buyers?
The grant extension is a good opportunity, but it comes with some realities too:
- You’ll likely need to look outside the major cities to find eligible properties
- Rising land prices and tight supply may limit your choices.
- You still have a better chance now than if the grant had dropped back to $15k.
- Other updates, like stamp duty exemptions and the ability to rent out spare rooms, have added more flexibility.
It means the time is still challenging, but you should act now, especially if you’ve been saving and waiting.
Alongside this,
- Check your eligibility for the $30K grant.
- Get pre-approval so you’re prepared when a property fits.
- Consider regional or up-and-coming suburbs where new builds are more likely to be under $750k.
- Think about the full cost of buying or building, not just the price tag on the home.
Conclusion
Thus, we can say that the extended grant by the Queensland government gives more time, but not more homes. It’s a helping hand, but knowing how to use it wisely is what’s more important at present. So, if you’re planning your first purchase, it will be a good time to get prepared.
For more clarity, book an appointment with Nfinity Financials or call us at 1300 GET LOAN, 0456 456 267.
