Plans to scrap FHOG to cause further damage

Plans to scrap FHOG to cause further damage

07 May 2014 by Steven Cross 0 comments

Further decline in first home buyer numbers in one state has highlighted the importance of keeping grants that are due to be axed.

According to the Real Estate Institute of Tasmania’s (REIT) March Quarter Property Report – first home buyers accounted for just 17 per cent of house sales.

“Removing the grant come 1 July is likely to only make this situation worse,” said REIT president Adrian Kelly.

“If the grant is to be axed, we look forward to seeing what alternative measures are to be introduced by the new Liberal government.

“Second home buyers still continue to hold over half the property market, now accounting for 52 per cent of purchases with a median house price of $325,000.

“Both interstate and overseas buyers were also up slightly to sit at 16 per cent of house sales for the quarter.”

Mr Kelly said although Tasmania saw a 4.6 per cent decrease in house sales for March, it did record an annual improvement, rising by 14.9 per cent compared with the previous year.

“After a particularly strong December quarter, Launceston house sales dropped 18.5 per cent in the March quarter to return to a similar level prior to this spike in interest, which still remains 25.1 per cent above average for the March quarter on the previous year,” he said.

“Hobart house sales dropped for the quarter but saw a 10 per cent increase for the year, with a continued interest in Hobart’s central suburbs, which saw an 18.8 per cent increase for the year.

“The median house price for Tasmania remained steady for the quarter to sit at $305,000, totalling an increase for the year thus far of 4.5 per cent.”

This is the third consecutive quarterly price increase for Hobart and the second for the state.

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