Government 'wrong' on home buyer's grant

Gladstone's median house price for the March quarter dropped 11.6% to $271,500 from the previous quarter and units fell a dramatic 30.2% to $220,000

Fresh REIQ figures show Gladstone's median house price for the March quarter dropped 11.6% to $271,500 from the previous quarter and units fell a dramatic 30.2% to $220,000. Picture: Mike Richards GLA221216REAL

THE Queensland Government needs to extend the first home buyer's grant to cover existing properties, Ray White Gladstone director John Fieldus says.

The deadline for the $20,000 incentive is now December 31 but the grant is only available for new builds.

Mr Fieldus said the grant was useless in Gladstone because the region has a surplus of existing homes and the region's banks required a 30% deposit.

"It's of no benefit here," he said.

"The government has got it wrong in some of the regional areas.

"If they extended it to existing homes it would be fantastic.

"If you look at it objectively, our market presents a good opportunity for new buyers but the major banks here require a 30% deposit to even engage with you for a loan.

"If you've got to come up with 30% plus your incidentals then you are looking at $100,000 and people starting out don't have that type of coin."

Fresh REIQ figures show Gladstone's median house price for the March quarter dropped 11.6% to $271,500 from the previous quarter and units fell a dramatic 30.2% to $220,000.

The median house price for the year was $305,500, down 14.6% from a year ago and down 33.6% from five years ago when it was sitting at $459,000.

A total of 68 houses and 23 units changed hands.

Because of the low number of sales, December quarter median sale prices were not available by suburb.

Mr Fieldus said many buyers were opportunistic, looking to cash in on such things as mortgage default sales.

He said the market was lacklustre on the back of employment downturns and fears about future values.

"There is a lack of confidence, an expectation that the market has been in decline and there is fear that the property might be worth less next year," he said.

"There is a lack of stimulus here and there have been some fairly big news stories about redundancies and job losses.

"There is hope the Adani project will have some rub-off on us."

Mr Fieldus said the rental market was a bright light for the region with the vacancy rate sitting around 5%.

Suburbs to watch

AGNES WATER

Size: About 46sq km.

Predominant age group: 0-14 years.

Households: Primarily couples with children.

Likely mortgage repayments: $1000-1400 a month.

Ownership: 58.5% of homes owner-occupied.

GLEN EDEN

Size: About 16sq km.

Predominant age group: 0-14 years.

Households: Primarily couples with children.

Likely mortgage repayments: $1800-$2400 a month.

Ownership: 70.8% of homes owner-occupied.

KIRKWOOD

Size: About 8sq km.

Predominant age group: 0-14 years.

Households: Primarily couples with children.

Likely mortgage repayments: $3000-4000 a month.

Ownership: 72.2% of homes owner-occupied.

NEW AUCKLAND

Size: About 5sq km.

Predominant age group: 0-14 years.

Households: Primarily couples with children.

Likely mortgage repayments: $1800-2400 a month.

Ownership: 59% of homes owner-occupied.

TELINA

Size: About 14sq km.

Predominant age group: 0-14 years.

Households: Primarily couples with children.

Likely mortgage repayments: $2400-3000 a month.

Ownership:78.9% of homes owner-occupied.

Source: CoreLogic RP Data

- NewsRegional

Originally published as Government 'wrong' on home buyer's grant