Announced on 9 June 2024, the threshold for the first home buyer transfer duty concession in Queensland increases to zero transfer duty payable for first home purchases under $700,000.00 and a scaled concession applying for properties valued up to $800,000.00. This increases the allowable property value for the concession by $200,000.00 up from the previous limit of $500,000.00 to $550,000.00 maximum property value for the first home buyer concession.
Queenslanders welcome this increase to support local property ownership for residents in the face of increasing investment in Queensland real estate from interstate and overseas investors. Young Queenslanders and families are feeling the pinch of both increasing rental prices and lack of availability and soaring property prices. The expanded first home buyer concession is good news for first home buyers to have a chance at getting a foot in the market.
In May 2024, Brisbane became the second most expensive city in Australia in which to buy real estate, overtaking Melbourne. In the past 4 years, Brisbane market values have increased by 59.2% with the median house price now $937,479 and the median unit price at $615,429. Brisbane sales under $500,000 have been few and far between in recent years to nearly unheard of in south-east Queensland and other sought after regions. This considerable increase in the threshold for the first home buyer concession now shows that a buyer can expect to pay close to $700,000 for an entry level property in Queensland in 2024.
Despite this favourable announcement for first home buyers, the climb to home ownership remains a struggle amongst high interest rates and cost of living pressures making it difficult to save a deposit and be approved for a home loan. The average age for a first home buyer in Australia is now 36. We wait to see whether the relief of the increased first home buyer concession will lead to a considerable increase in the number of first home buyers taking a leap into the property market in the sunshine state.
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