Queensland raised the stamp duty concession for first-home buyers from $500K to $700K to improve accessibility, addressing challenges from Brisbane’s rising property prices.
“For first-home buyers, saving a deposit is the most significant hurdle in accessing homeownership,” said Eleonor Creagh (pictured above), senior economist at PropTrack.
Creagh said the current $500,000 threshold had become outdated, with fewer homes eligible for concessions due to the surge in property prices. The median value of a home in Brisbane is now $834,000, making the existing threshold largely redundant.
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The stamp duty concession increase to $700,000 means more homes are now eligible for the concession, giving first-home buyers more options.
“The higher price cap means more homes are eligible, giving first-home buyers more choice,” Creagh said.
This change is expected to significantly impact areas like Ipswich Inner and Caboolture, where up to 65% and 61% of homes, respectively, will now be eligible.
Despite the raised threshold, Creagh pointed out that many first-home buyers might still need to compromise on location or property type.
“It's clear that even with the raised stamp duty concession threshold, many first-home buyers will be forced to compromise on location or property type to secure a home that is eligible,” she said.
Creagh suggested that broader reforms to stamp duty, such as replacing it with an annual tax, could further help first-home buyers by lowering the purchase burden and reducing the time needed to save for a home.
While the increased concessions are a step in the right direction, Creagh stressed the importance of matching demand with efforts to increase housing supply.
“Though any measure increasing or bringing forward demand for housing should be matched with efforts to build more homes and increase housing supply to sustainably improve affordability,” Creagh said.
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