First-home buyers race to lock in deals before 2026 shake-up

Savvy first-home buyers are racing to get into the market ahead of a surge in competition tipped for next year, as major reforms to state and federal incentive schemes loom.

Agents say demand is rising among first-home buyers targeting Brisbane suburbs where $1m still buys a solid home, with existing government support already shaving tens of thousands off the upfront cost.

Place Projects agent Ally Edmonds said first-home buyers were taking advantage of stamp duty exemption on new builds and vacant land.

This home at Bellbird Park is under offer after being listed at $599,000

“For buyers, acting before January 1 could be a strategic advantage. For investors, purchasing now means beating the rush and securing assets that will benefit from increased demand and ongoing rental pressure,” she said.

Finance broker Andre Dixon, of Inovayt, said buyers who moved early could avoid a sharp rise in competition once the changes take effect.

The 2026 reforms would allow first-home buyers to access more central and middle-ring suburbs with just a 5 per cent deposit, while scrapping the current income caps could save buyers $20-$30,000 on lenders mortgage insurance, he said.

“At the moment, it is very difficult to get into anywhere near the city for under the existing price caps, so first-home buyers are sacrificing location primarily to get a foot in the market,” Mr Dixon said.

A four-bedroom home in Deception Bay priced at $799,000

“January 2026 will create an amazing change as people will be able to purchase homes in the suburbs they are actually interested in.”

Federal reforms set for the new year will remove both income and property price caps from the First Home Guarantee and Help to Buy schemes, greatly expanding eligibility and opening access to thousands more buyers.

Under the changes, purchase price caps will lift to $1m in Brisbane and major regional centres, and $700,000 in smaller areas.

State-based support was also ramped up, with the $30,000 First Home Owner Grant for new builds under $750,000 extended until June 30, 2026.

A four-bedroom home at Bray Park is under offer

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Boost to Buy, a new shared equity scheme, allocated $165m to support about 1,000 Queensland buyers. Eligible applicants with a 2 per cent deposit can receive up to 30 per cent equity for new homes and 25 per cent for existing homes, capped at $1m.

Property Investment Professionals of Australia (PIPA) Chair Nicola McDougall said the schemes were a practical and targeted approach to improving home ownership.

This two-bedder in Upper Mount Gravatt was advertised as a first-home buyer gem

“The new Boost to Buy scheme is a market-aligned initiative that reduces the deposit gap and reflects today’s property prices and income levels,” Ms McDougall said.

“It’s clear the Queensland Government is serious about addressing the housing crisis and helping more people, including first-home buyers, enter the market.”

But affordable stock remains limited.

Off-the-plan apartment supply under $750,000 is scarce, and almost non-existent under $700,000, mostly limited to one-bedroom layouts in outer suburbs like Windsor, Upper Mount Gravatt, Mitchelton and Murarrie.

Michelton was another unit hotspot for first-home buyers

In the house market, three or four-bedroom homes were still selling for under $750,000 in Bray Park, Deception Bay, Bellbird Park and Petrie.

Ms Edmonds’ Park Hill Village Collection project at Murarrie has one-bedroom units selling off-the-plan from $665,000.

“The first-home buyer market is alive and well and trading in Brisbane,” she said.

“Having stock that is under the first-home buyer grant price cap is pretty amazing, but also the offer of free stamp duty, which doesn’t have a price cap, is allowing many young buyers to stretch to the two-bedroom apartments at $845,000.”

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