Property developers in Perth say they’re now flooded with inquiries from first-home buyers eager to buy apartments.
This surge is apparent weeks after the WA government announced a temporary $5,000 boost to the First Home Owner Grant (FHOG). Eligible first-home buyers who enter into a contract between Jan. 1 and Dec. 31 this year to purchase or construct new homes will receive the boost.
The Barnett government has also increased the metropolitan income limit for low-deposit Keystart Home Loans by $20,000. This is enabling more young professionals to move from renting to homeownership.
Danielle Davison, head of built form at ABN Group’s Parcel Property, said there has been a big increase in inquiries for off-the-plan apartments in inner-city areas after changes to the FHOG.
“On some projects [we’ve had] more than triple the inquiry rate,” she told Perth Now
. “Young professionals can now access Keystart loans, and the increase in the grant to purchase their first home in great locations which otherwise would have been out of their price reach, so this is certainly breathing new life into a sluggish market.”
Sven Robertson, sales director for property developer Psaros, said his company also noted increased demand from first-home buyers.
“We have certainly seen a substantial uplift in first-homeowner inquiries,” he said. “It will be interesting to see in the next couple of weeks whether that manifests itself in more purchases.”
Hayden Groves, president of the Real Estate Institute of Western Australia (REIWA), said members had also reported an uptick in activity from buyers.
“If first-homebuyers are being attracted to inner-city apartments, that’s going to help in soaking up some of that stock, which we probably had a bit of an excess of,” he said.
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