Where first-home buyers are heating up the new homes market

Data from REA Group’s 2024 Property Seeker Report has found that over the past 12 months, 48% and 52% of first-home buyers in Queensland and Western Australia respectively, are considering buying or have already bought a new home. 

This includes newly-built houses, off-the-plan apartments, townhouses and house and land packages. 

The numbers were also strong among all buyers opting for new builds or considering them, with 36% and 40% of homebuyers in Queensland and Western Australia respectively. 

REA Group Senior Economist, Angus Moore, said there are many incentives and concessions for first-home buyers purchasing new homes.  

“The incentives have been around for over two decades and they can make a difference for some buyers,” Mr Moore said.  

“There’s the First Home Owner Grant, which applies across all states but provides incentives for first time buyers that choose to buy off the plan.

"The other class of incentives are concessions on stamp duty. In Queensland and Western Australia, it’s not just for new homes but both states have recently raised their concession caps so first-home buyers can take advantage of them." 

Queensland first-home buyers are eligible for concessions on stamp duty for properties valued up to $700,000, an increase from $500,000. In Western Australia, the stamp duty threshold is now for properties under $450,000, an increase from $430,000.  

Queensland

In Queensland, conditions have been tough to meet the state’s target of 1 million new homes by 2046. Over the past three years, 33,500 new homes have been constructed on average annually.  

Despite the challenges, there has been an encouraging trend of an increase in home approvals.  

In Queensland and Western Australia, 48% and 52% of first-home buyers have bought new homes or are considering the option. Picture: Getty

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Across Australia, home approvals have reached their highest levels in over a year, with total dwelling approvals increasing by 4.4% from August to September 2024, the highest since May 2023, according to Australian Bureau of Statistics data.

Queensland saw a large increase in approvals when compared nationally – 26% higher in September 2024 compared to the same period the previous year.  

REA Group PropTrack data looked at the local government areas (LGAs) that are likely to see an uptick in the supply of new homes.  

In the 12 months to August 2024, the Logan, Moreton Bay and Brisbane LGAs led in dwelling approval numbers with 7662, 7598 and 6364 houses approved respectively.  

For apartments, the Gold Coast, Brisbane and Sunshine Coast LGAs topped the list for new home approvals, with respective figures of 7152, 4494 and 1154. 

PropTrack data also revealed that Greenbank, an outer suburb of Brisbane, ranked highly among first-home buyers searching for houses.  

With a new government in Queensland, there are also plans in place to aid the industry, including establishing a $2 billion housing infrastructure fund and a shared equity plan to help first-home buyers save the deposit needed for a home loan.

In Western Australia, the tide is turning on home approvals, fueling interest in new homes from all kinds of buyers.  

According to the ABS, the state had the biggest uptick in housing approvals nationwide, with detached house approvals rising by 49.9% compared to the same time the previous year. Multi-unit approvals also rose by a massive 179.1% year-on-year. 

Over the last 12 months to August 2024, Wanneroo, Swan and Rockingham were the top LGAs leading the way in house approvals with 5206, 4210 and 3374 approved.  

For apartments, the LGAs with the most approvals were Perth, Stirling and South Perth with 712, 506 and 330.  

In October 2024, Perth also recorded one of the strongest home price growths of the capital cities, increasing 20.6% from the same period last year.  

“Perth has been the strongest performing city – and indeed the strongest performing market overall – in the past year, and regional WA the strongest regional market,” REA Group Senior Economist, Eleanor Creagh, said.  

“One reason Perth is one of the hottest markets in the country is its relative affordability. Despite recent gains, Perth housing values remain affordable compared with other capital cities after a decade of underperformance relative to east coast capitals, with prices now quickly rising.” 

To meet its own demand of new homes, the Western Australian state government also announced a boost to the building and construction workforce.  

The $10,000 incentive aims to help qualified building and construction workers relocate to WA from January 2025, while also expanding its local wage subsidy program to help apprentices ‘earn while they learn’.