“First Home Buyers are returning to the market in NSW and Victoria off the back of enhanced Stamp Duty concessions in these markets,” stated Tim Reardon, HIA’s Principal Economist.
“In July 2017 – the first month that these concessions took effect – the volume of First Home Buyers in NSW jumped to its highest level since 2012, increasing their share of the market from 8.8 per cent to 11.5 per cent in just one month based on today’s ABS finance figures.
“The NSW and Victorian Governments announced incentives to encourage First Home Buyers into the market that took effect from 1 July 2017.
“New First Home buyer incentives in Victoria have pushed the number of First Home Buyer loans up by 18.8 per cent compared to a year earlier and to their highest level in 4 years.
“These policy interventions have driven a dramatic increase in the involvement of First Home buyers in the market.
“Government policy decisions drive consumer behaviour in the housing market. Improvements to First Home Buyer incentives have provided a significant impact on the market.
“Unfortunately, an increase in regulatory restrictions and punitive taxes have resulted in a 3.9 per cent reduction in investor lending, which remains an aspect of the market for monitoring,” concluded Mr Reardon.