'Oversupply issues': Home owners grant slammed by REIQ

A DECISION to not change the First Home Buyers Grant, after pressure from the Gladstone mayor, has been slammed by a leading property market group.

A DECISION to not change the First Home Buyers Grant, after pressure from the Gladstone mayor, has been slammed by a leading property market group.

REIQ says the State Government is not listening to regional Queenslanders, after a suggestion to extend the First Home Buyers Grant to existing homes was ruled out last week.

>> Fight to change $20K home owner's grant not over for mayor 

Gladstone's Matt Burnett was one of 13 Queensland mayors who signeda petition pleading for the grant to be extended from new to existing homes.

But the suggestion has been shut down by the State Government, which says it has no plans to change the grant any time soon.

REIQ CEO Antonia Mercorella said, "Our concern is for the long-term impact and the bigger picture in regional Queensland, where new construction is exacerbating the oversupply issues that these markets are facing".

"House values are falling, with some markets as much as 30% below levels five years ago. Continuously adding supply of housing to oversupplied markets is irresponsible and will slow down any future recovery.