Children running ahead of their parents into a new house.
First home owns grants (FHOG) are running at their highest since 2016. Photo – Stock.
  • WA First Home Owners Grant (FHOG) applications surge following building grants
  • Piara Waters, Brabham and Baldivis top first home buyer suburbs
  • The highest number of grants paid in the last quarter of 2020 since 2016

Government incentives, low interest rates and favourable market conditions have seen WA experience a surge in first homeowners entering the market.

Latest data from WA’s Office of State Revenue reports that ‘FHOG’ applications and paid grants are at their highest levels since early 2016.

In January 2019, 426 FHOG applications were received and 433 grants were paid.  This is compared to 1500 FHOG applications received and 673 grants paid in January 2021.

Bar Graph showing FHOG
FHOG applications received and grants paid from Feb 2019 to Jan 2021

The increase follows the introduction in mid-2020 of the $25,000 home builder grant (federal government) and the $20,000 building bonus grant (WA state government).

Together with the existing $10,000 FHOG, eligible first homeowners can receive up to $55,000 in grants towards the construction of their new home. Duty exemptions and concessions are also available to eligible first homeowners of vacant land and established homes.

The Perth suburbs of Piara Waters, Brabham and Baldivis were the most popular suburbs for first homeowners to purchase in, with 168, 163 and 162 grants approved for land sales in those suburbs respectively in the year-to-date to 31 January 2021.

Brabham agent, Zarina Brodie from HKY Real Estate, commented that she has seen a definite increase in first home buyers coming through her listings in recent months.

“Many young families are drawn to this thriving area in the heart of the Swan Valley for its affordability, vibrant community-feel with parks & open spaces, and excellent transport links via the Tonkin & Reid Highways,” she said.

Since the announcement of building grants in June 2020, new home sales have increased significantly across the country.  Almost 82,000 applications have been received for the Federal Government’s Home Builder grant to 29 January 2021.

“The latest figures for our Building Bonus and First Home Owner Grants and for Keystart loans demonstrate demand for building a home and buying an established home are at levels not seen in years,” said WA Treasurer Ben Wyatt.

Keystart, a WA Government initiative offering low-deposit home loans primarily to first homeowners, reported that applications for their Keystart loans in October 2020 were near twice the average 2019 monthly level. An estimated 3,000 loans will be approved by Keystart in the 2020-21 financial year, reflecting the increased take-up of the program.

Housing Minister Peter Tinley said more than 70 per cent of new loans funded by Keystart in 2020 were for the construction of a new dwelling.

You May Also Like

Is Christmas FOMO leading to bad property buying decisions?

A sense of urgency could be leading to poor property buying decisions.

A growing number of buyers and renters are swiping right on digital inspections

While the option seems great for the time poor, it still misses the mark on delivering a feel for the area and scale of the home.

Sub-penthouse at Sapphire by the Gardens expected to fetch over $12M

A property in one of Australia’s iconic buildings has just been brought to the market, with price expectations in excess of $12 million

Ko & NPA partner to launch several co-owned luxury properties at Mermaid Beach, Gold Coast

Ko’s partnership with NPA Projects provides more opportunities to co-own off-the-plan holiday residences, including exclusive Gold Coast properties

Top Articles

PropertyGuru Asia Property Awards (Australia) returns for its 7th edition, including several brand new award ...

This year's awards include several brand new categories, with entries closing 2 August 2024.

Housing crisis survival guide: How to buy your first Australian property

Three property experts give the low down on how to nab a home in this tough housing market.

Strata properties as investments: All you need to know about investing in a Perth unit

As the cost of renting approaches the cost of a mortgage, more people are investing in units to escape the rental trap.