The Queensland Government has extended its $30,000 first home owner grant – previously set to fall to $15,000 in a matter of weeks – for another 12 months. 

The grant is available to those building or buying a new home with a total value of less than $750,000.

Initially boosted from $15,000 to $30,000 in November 2023, it was expected to assist around 12,000 first home buyers before expiring on 30 June.

The extension is "putting the great Australian dream back within reach" of first-time buyers, Queensland premier David Crisafulli said on Sunday.

"We are unlocking the door to home ownership for thousands more Queenslanders who have been locked out from their first home for too long."

The Queensland Government is aiming to increase the state's homeownership rate, which sat at 63.5% in 2021, compared to 64% in NSW, 68.3% in Victoria, and 70.2% in Tasmania.

According to Propertology head of research Simon Pressley, however, restricting support to only those who build or buy a new home is "blatant deception" and a "sales gimmick" to help property developers.

"The primary purpose of this grant is to assist the construction industry, not first home buyers," he said.

"The other thing that's important here is that the price of any brand new property consists of various taxes charged by all three levels of government.

"Collectively, those taxes represent 40% of the total price paid by the first buyer."

Mr Pressley argues governments truly looking to offer support should consider first home buyer preferences – typically for well-located housing – when allocating money for grants and subsidies.

The extension of the $30,000 grant comes after the Crisafulli Government scrapped stamp duty for all first home buyers buying or building a new home.

It also removed restrictions on first home buyers renting out spare rooms, allowing them to do so without the need to repay stamp duty concessions.

More broadly, the burden of stamp duty was eased for first-time buyers in Queensland ahead of the 2024 state election, with the former Labor government hiking thresholds for exemptions.

This week's extension sees Queensland continuing to offer the second largest first home owner grant in Australia, behind only the $50,000 grant offered in the Northern Territory.

However, it mightn't offer much reprieve for young Australians looking to buy a house in Queensland's major urban centres.

According to realestate.com.au, there are currently no house and land packages listed for $750,000 or less in Greater Brisbane or the Gold Coast regions.

Limited availability exists between Brisbane and the Sunshine Coast, as well as in Logan City and parts of the Sunshine Coast region.

Meanwhile, land prices are surging.

According to the Housing Industry Association (HIA), the median price of residential land in Australia finished 2024 at a record high of $369,530, with only 42,600 lots sold that year – a record low.

"The fact that these record low sales volumes occurred at the same time that land prices re-accelerated from record highs, is indicative of shortages of shovel ready land, driven by the rising cost of providing infrastructure and delays in the planning system," HIA senior economist Tom Devitt said.

"This suggests that dwelling price pressures will also persist, especially as demand for housing increases across the country."

Image by Sandy Millar on Unsplash

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