The NSW government has extended the first home owner grant, announced ahead of the forthcoming June 17 budget.
First-time buyers who purchase new properties – houses or apartments – worth up to $750,000 will now qualify for the $15,000 payment.
The previous threshold had been $650,000 since the June 2012 budget.
But Sydney’s median dwelling price has moved from $541,000 as at June 2012 to sit currently at $678,500, according to RP Data, so the catchup decision doesn’t keep pace with actual price movements.
Housing Industry Association chief economist Harley Dale said the median price for new homes in NSW was around $650,000.
The threshold decision also belatedly brings NSW into line with several other states and territories.
Treasurer Andrew Constance announced the extended eligibility criteria for the first home owner grant by $100,000 this weekend with Premier Mike Baird visiting Sydney’s north west.
The government claims 100,000 new homes have been built since the March 2011 election. But NSW first home buyers remain at well below the long term average in their buying habits.
Last year around 7600 home owners secured the $15,000 grant, compared with 36,000 in 2011, after the scheme was restricted to new homes.