January’s new home sales figures, released last week by the Housing Industry Association (HIA), were disastrous for Queensland, registering the worst monthly house sales and the lowest annual sales in the series’ 16.5 year history (see next chart).
The poor result has clearly worried the Queensland Government, which over the weekend re-launched its first home buyer (FHB) scheme, along with a new advertising campaign, in a bid to improve take-up. From the Brisbane Times:
Queensland Treasurer Tim Nicholls has been forced to re-launch the government’s unpopular home construction grant.
The $15,000 handout was introduced in the September budget for first-time buyers purchasing newly-constructed properties to stimulate the building industry.
It controversially replaced the $7000 first-home buyers grant which was available to those buying new or existing homes.
Latest figures show only 126 people have been paid the new grant, but Mr Nicholls won’t concede it is a failure.
He says applicants are not eligible to receive payment until either completion of construction or until the first draw down of funds, and expects payouts to increase over the coming months.
He also blamed ignorance for its slow take-up.
The treasurer braved the queues at the Brisbane Home Show on Sunday to launch a $2 million advertising campaign to promote the product.Television and online ads will start from March 17.
As part of the re-launch, the grant’s name will be changed from First Home Owner Construction Grant to the Great Start Grant.
If the scheme doesn’t succeed in lifting new home sales, and Brisbane home prices continue to flounder, expect the old FHB grant on pre-existing dwellings to be re-instated.
