From May 1, First Home Buyers (FHBs) will no longer pay stamp duty on newly built homes in an initiative to help more renters make the leap to home ownership.
The targeted incentive has been welcomed by the majority of stakeholders in the industry.
According to the Queensland Government, abolishing the payment for first home buyers purchasing new homes would save an average $9,096 on their purchase price.
While the saving may seem insignificant with the overall price of a newly constructed home, it does alleviate some of the pressure for buyers who are already grappling with building a deposit and lowered borrowing capacity. The Queensland Government anticipates 3,000 buyers will take advantage of the incentive each year.
But the incentive doesn’t address the issue of supply, with the pipeline of shovel-ready housing estates hamstrung in recent years.
Developers will need more land to meet the anticipated surge in demand.
In Logan’s growth corridor, new housing estates are contained to Park Ridge, Yarrabilba and Flagstone. Further out in Ipswich, Springfield and Ripley are the primary addresses that are ready to move into, provided you can find a builder.
The shortfall in supply has created an environment where landowners, particularly those within the urban footprint, can realise the true value of their properties.
Maximising the value of your land
Two years ago, the South East Queensland Regional Plan forecast another 2.2 million residents will be living in SEQ by 2046. The market is not keeping pace with the forecasts: in November last year, residential building approvals declined by 3.6%.
Developers will be looking for well-located sites that can accommodate this growth, meeting targets and keeping their pipelines full.
Expert guidance
At Bromley Real Estate, we have professional relationships with town planners who can help explore the development yield of landowners’ sites. They can advise on how zoning regulations, proximity to infrastructure and environmental considerations will impact its attractiveness to developers.
We’re also in regular contact with developers who are looking to purchase sites and JV partners.
Land is at a premium. If you want to explore the development opportunities available to your land, reach out to us today.
Development opportunity
Bromley works with landowners across Queensland to maximise the potential of their properties at sale time. Find out more about this unique opportunity with a DA for 74 units currently being marketed by Mumtaz Saleem.