First home owners in Docklands?
31 Jul 2009
First home owners were given a further help getting their foot into the property market when first home owner grants were doubled to $14,000 for existing homes under the Federal Government’s “Boost Scheme” in the recent budget. But has this boosted sales to first home buyers in Docklands?
According to Glenn Donnelly of City Residential Real Estate, it certainly has, while other agents, such as Lucas Real Estate’s Glen Lucas, are more circumspect.
With first home owners only having until December to take advantage of the Boost Scheme, Mr Donnelly said: “Coupled with the downward trend of interest rates, (this strategy) has seen renewed confidence in the entire Docklands market … we currently have over 20 listings with price tags under $600,000, which are ideal for home owners and investors.”
With City Residential having sold more than 30 properties in Docklands this year, Mr Donnelly said first homebuyers made up more than 50 per cent of the purchasers.
Glen Lucas is not so sure. “I imagine (the scheme) has had some impact on sales activity in Docklands. Prices here run from around $350,000 to over a $1,000,000 and, although there has always been great interest in the $350,000 - $450,000 range, we are starting to see more activity generally.”
“Confidence is returning, but I’d put this down to a combination of factors that includes lower interest rates, the first home owners grant as well as the fact the Melbourne is now the place to buy in Australia.”
But Mr Donnelly believes the Boost Scheme is definitely working its magic in Docklands. “The properties under $600,000 are walking out the door. The scheme has encouraged first home owners to get out of rental market and buy property.”
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