From the AFR, chief executive of St George Bank George Frazis, reckons:
“We do need to think through what we put in place to stimulate first-home buyers…I think incentives that are targeted at newly constructed homes don’t appear to be working as well. A lot of first-home buyers want to start off with a small unit, rather than constructing a house.
“My view is that it requires incentives through stamp duty breaks or first-home buyers’ grants, but which are not limited to newly constructed property.”
…“The first-home buyers are still quite subdued. Where the activity has been investors and also families that are upgrading from a smaller home to a larger home,” Mr Frazis said.
“These [first-home buyers] are people that get into their home and are able to keep their homes. And it does stimulate a lot of activity in the economy.
“If you think about first-home buyers coming into the market, it also increases white goods sales, for example, so it does stimulate a bit of economic activity.”
St George mainly operates in NSW and Sydney in particular where prices are doing this:
I few quick questions. Would adding FHB grants to this market improve affordability? No. Would it send a frenzy into a complete melt-up? Yes. Would it make St George a more secure bank? No. Would it lead to a sustainable recovery? No.
This suggestion is completely insane.
