Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

First home buyers set to retreat

By Staff Reporter
21 September 2009 | 1 minute read

First home buyers are expected to retreat from the housing market when the government’s first home owner’s grant is reduced in two weeks time.

According to the Australian Bureau of Statistics, the number of first home buyers has already seen a substantial reduction, with the proportion of first home buyers seeking finance as a proportion of the market falling from 28 per cent in April to 25 per cent in July.

Westpac Banking Corp’s group executive of retail banking, Peter Hanlon, told The Australian Financial Review that the bank had also started to see a decline in the number of first home buyers.

Mr Hanlon said first home buyers comprised 30 per cent of Westpac’s new loans for a few months leading up to June, but this had since dropped back to 21 per cent.

“There isn’t an endless supply of first home buyers and while the grant has brought forward people who were thinking about purchasing, we’re beginning to run out of them,” Mr Hanlon said.

A recent survey of first home buyers, conducted by the National Australia Bank, found only one in four respondents were aware that the grant was being wound back on 30 September.

First home buyers set to retreat
default
lawyersweekly logo

Feeling burnt out? The newest event to hit the industry, REInnovate, is a must-attend for serious real estate professionals facing the pressures of a heavy workload. Get ready to walk away with the undeniable structure for success, efficiency and profitability, and get yourself back on track to focus on what’s really important for your business. Get your early bird ticket now.

Tags:

Listen to other installment of the Real Estate Business Podcast
Do you have an industry update?

top suburbs

12 month growth
Queenton
69.76%
Flying Fish Point
69.61%
Point Piper
69.17%
Glenelg South
69.02%
Pretty Beach
69.01%
Bar Beach
68.9%
Northampton
68.7%
Kembla Grange
66.91%
Boomerang Beach
66.67%
Gnarabup
66.67%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.