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August/26 Queensland Residential

Opening the door to your first home: A guide for Queensland

Buying your first home Current market participation, government grants and eligibility pathways in Queensland

First home buyer new loan commitments in Queensland Annual total number of loans & % share of owner-occupier lending, as at Q1/26

First home buyers surge, driving up prices in the lowest quartile Queensland’s first home buyer activity in has remained resilient, supported by popular government incentive packages. New loan commitments to first home buyers continue to account for a significant share of owner-occupier lending, despite higher interest rates and ongoing challenges with housing affordability. First home buyer share rose from 27% a decade ago, to be 32% in Q1/26. The number of loan commitments to first home buyers in Queensland tallied to be 23,189 in Q1/26, this being 1.1% higher than a year ago. Although this remained lower than back in 2021 and 2022 when these loans taken out reached 32,773 and 30,166, respectively.

Source: McGrath Research, ABS

Tracking average sales price for lowest 25% of residential values Queensland, plus % price change of this quartile over the year ending Q1/26

16% 23%

14%

HomeBuilder, the temporary federal construction stimulus grant introduced as an economic response to the pandemic, drove activity. Property values in the bottom quartile of the market recorded significant growth in the year ending Q1/26. Brisbane apartments grew the fastest at 23% to reach an average $650,000, compared to Brisbane houses which grew 16% to $850,000. Regional Queensland saw average apartment prices rise 15% to $519,900 in Q1/26, as houses rose 14% to $713,800. Limited housing supply, interstate migration, and competition from both investors and owner-occupiers have intensified demand for entry-level homes. Recently announced tax changes are likely to moderate investor activity over time, potentially easing competition in the more affordable segments of the market with the aim of improving opportunities for first home buyers.

Top 5 local markets ranked by lowest average price for houses and apartments Queensland, by Region, as at Q1/26

Brisbane Houses

Brisbane Apartments

Reg. Qld. Houses

Reg. Qld. Apartments

Ipswich City

North West

$943,600

$652,100

$271,700

$241,300

Caboolture

Mackay

Fitzroy

$1,032,200

$671,500

$648,200

$447,300

Logan City

Fitzroy

Mackay

$1,052,800

$711,600

$661,300

$468,900

Redcliffe

Pine Rivers

Far North

$1,175,100

$804,600

$728,400

$484,300

Redland City

NW Outer Bne.

$1,202,600

$867,000

Wide Bay-Burnett $741,400

Wide Bay-Burnett $527,200

15%

Source: McGrath Research

Source: McGrath Research, Cotality

Cost to buy | Queensland What incentives are available across Australia? First Home Super Saver Scheme | FHSSS Eligible buyers can make voluntary super contributions (often at a lower tax rate) then withdraw to help purchase their first home. Up to $15,000 per financial year and $50,000 in total can count towards the scheme; this can be doubled for a couple. FHSSS can complement the First Home Guarantee and Help to Buy.

Which additional incentives are offered in Queensland?

First Home Guarantee | FHG Buy your home to live in within the price cap to be entitled to a deposit guarantee covering up to 5% of the property value. Apply through participating lenders to ensure there is no Lenders Mortgage Insurance (LMI) payable. There are no limits on your annual income or the places available, making the scheme broadly accessible.

Vacant land Transfer duty relief is available for eligible first home buyers purchasing vacant land on which they intend to build their first home.

First Home Concession | Transfer Duty

First Home Owner Grant | FHOG

Established or new homes Transfer (stamp) duty concessions available for eligible first home buyers for homes valued up to $800,000.

New homes | Newly built A grant of $30,000 is available when the purchase price of the newly built home does not exceed $750,000.

Help to Buy equity scheme Buy with a minimum 2% deposit of the property value, with no LMI payable for your home to live in. You share in the home’s equity with the Government, which is 40% for a new home and 30% for an established home, until this is repaid over time or when the property sells. There are eligibility limits on your annual income and only 10,000 places are available each year.

Boost to Buy Round 2 | Now Open Regional Queensland Buy your home with deposit of 2%. A purchase price up to $1 million. Share equity with the Queensland Government for up to 30% for new homes, and 25% for established homes, until this is repaid over time or when the property sells.

Three different paths to first home ownership The cost required to buy your first home varies by property price, eligibility and incentives. Using Oxygen Home Loans calculators, these examples show three potential paths to ownership.

Scenario 1

Scenario 2

Scenario 3

Single professional buys an established apartment in Greater Brisbane

Couple buys a new house-and-land package in Regional Queensland

Essential worker buys a new apartment in Greater Brisbane

Property Price

$700,000

First Home Guarantee

Help to Buy scheme

Deposit Required (5%)

-$35,000

Deposit Required (5%)

-$35,000

Deposit Required (2%)

Stamp Duty

Lenders Mortgage Insurance

Est. Other purchase costs

-$4,000

First Home Owner Grant Est. Upfront Cost

$39,000

$700,000

-$14,000

Est. Other purchase costs

-$4,000

Est. Other purchase costs

-$4,000

First Home Owner Grant

+$30,000

First Home Owner Grant

+$30,000

Est. Upfront Cost

$9,000

Est. Upfront Cost

$4,000

Definitions

Housing Australia The Australian Government’s housing agency responsible for delivering programs which improve housing affordability, increase housing supply and support home ownership. Website: www.housingaustralia.gov.au Australian Taxation Office | ATO The Australian Taxation Office (ATO) is the federal government agency responsible for administering tax laws, including those relating to property ownership and capital gains tax compliance. Website: www.ato.gov.au Queensland Revenue Office The Queensland Government agency responsible for administering taxes, duties, grants and compliance programs across the state. Website: www.qro.qld.gov.au Oxygen Oxygen Home Loans provides mortgage solutions and online calculators that can help first home buyers estimate borrowing capacity, repayments, deposit requirements and purchasing costs before entering the market. Website: www.oxygen.com.au/calculators

Recommendation Engage a qualified solicitor or conveyancer from contract review through to settlement. They can identify potential issues, explain your legal obligations and ensure all documentation is completed correctly. First home buyers should also allow for additional costs such as inspections, legal fees, loan establishment charges and moving expenses, and always confirm their eligibility for grants, concessions and government schemes before committing to a purchase.

Lenders Mortgage Insurance | LMI An insurance premium paid by borrowers with a low deposit (typically less than 20%) which protects the lender, not the borrower, if the home loan defaults.

Guiding you home Michelle Ciesielski National Head of Research McGrath Research www.mcgrath.com.au/research

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