House and land packages have grown in popularity as first home buyers on tight budgets look to get a foothold in the market.
But with higher popularity comes higher prices. Developers say Ipswich continues to be an attractive area for first home buyers, despite its poor reputation.
“First home buyers, they’ve had a lot of diversity,” said Urbane Homes director Jon Rivera. “But in the last two years, some of those areas have become really expensive.”
“Ipswich hasn’t received its due recognition over the years – and unfairly so when it has so much to offer Queensland buyers. People in Brisbane and south east Queensland have a real negative perception of Ipswich.”
A mix of accessibility to Brisbane, established community, and affordability have Ipswich earmarked for an influx of first home buyers in coming years, Mr Rivera said.
“That bad image of Ipswich is really changing on the back of people that are moving there,” he said.
Domain Group chief economist Andrew Wilson said Ipswich was already seeing growth from buyers searching for their first home.
“It was a country town that you drove to but it’s becoming suburban now,” he said. “It’s picked up, there’s no doubt about it.”
The median house price in Ipswich is $350,000, which Dr Wilson said was within the average Queenslander’s purchasing power of $400,000.
He warned that growth may slow down from the middle of next year when the state first home owners’ grant boost drops $5000.
“These things are working, there’s no question about it,” Dr Wilson said. “The issue there is whether if after the party, there’s going to be a hangover.”
He said growth would continue, but not rapidly.
“It’s fringe area, it will always be a target for entry level buyers, ” said Dr Wilson.
Mr Rivera said Ipswich’s appeal extended past the boosted first home owner grant.
“Compared to north Brisbane where there’s just one road in and one road out, Ipswich is in a prime position for commuters with multiple highways offering easy access to south east Queensland’s inner-city areas and regional hubs including Toowoomba and the Darling Downs.”
Realway Property agent Karen Bagenal agreed Ipswich had potential long-term appeal.
“The infrastructure that Ipswich has got going for it, especially in the western corridor,” she said. “It only takes 30 minutes to get to the airport.”
But Ms Bagenal shared Dr Wilson’s concerns that Ipswich may lose momentum when the boost runs out.
“Last time they took the grant off the first home buyers the market just stopped,” she said. “The first home buyers need help.”
“They can only save so much on the wages that they’re on.”
Originally Published: http://www.domain.com.au/