Changes to grants for first home buyers will have mixed impact in the northern suburbs, according to the Real Estate Institute of Victoria.
The state government will scrap the grant on established houses from July 1 and increase the grant from $7000 to $10,000 on new homes, creating demand in new estates in the northern suburbs.
But REIV chief executive Enzo Raimondo said 70 per cent of first home buyers preferred existing homes.
He expected a rush of people buying houses in established suburbs such as Thomastown, Lalor, Epping, Mill Park and Bundoora before the grant for established houses was scrapped.
He said that in the longer term, the change to the grants would probably see first home buyers choose new homes in such areas as Doreen, Mernda and South Morang.
“This change will encourage some buyers to choose new homes instead of existing ones,” he said.
Mr Raimondo said the change in rules could lead to an increased demand for new houses after July 1.
