First home buyer numbers plummet

Friday, 14 May 2010

The number of Queensland first home buyers has plummeted to their lowest level in six years, according to the Real Estate Institute of Queensland (REIQ).

The Australian Bureau of Statistics (ABS) March housing finance report shows first home owners now represent just 13 per cent of the market in Queensland, a lower percentage than in both New South Wales and Victoria where property prices are higher.

The number of Queensland first home buyers has also dropped a staggering 60 per cent since the same period last year when historically low interest rates and government financial incentives helped many into the market.

"These figures really show how much of a struggle it is for prospective home owners to get into the market in Queensland. With six rate increases since October, they are really back to where they started with declining housing affordability all but locking them out of the market," REIQ managing director Dan Molloy said.

"While stamp duty concessions are available to Queensland first home buyers, first-timers in New South Wales and Victoria are eligible for extra State-funded first home grants, something that is not available here."

The State Government has indicated it is considering extra funds for first home owners to buy in regional areas however that is just not an option for a lot of people.

"The reality is many young people want, and need, to live in South East Queensland due to the employment opportunities available here so they are faced with much higher property prices than first-timers in regional areas," he said.

As the Federal Budget did not offer any long-term solutions to tackle housing affordability, it is imperative that the Queensland Government address the issue in its Budget in June.

"More needs to be done to assist first home buyers otherwise we may end up with a generation of young people whose dream of home ownership will never be realised," Mr Molloy said.