With the Reserve Bank of Australia handing down the second cash rate cut of 2025, expectations are that the market will heat up. For first-home buyers, the news brings hope as well as anxiety.
On Tuesday, 20 May, RBA governor Michele Bullock announced a 0.25% cut to the official cash rate bringing it to 3.85% – the lowest rate in more than two years.
The news brought immediate relief for mortgage holders, and hope for home hunters who will now see their serviceability increase.
But with that additional cash in buyers’ pockets comes a challenge: a change to the market.
Cash rate cuts and the ensuing mortgage rate reductions that banks pass along are frequently tied to rising home prices. More money to spend on the property itself invariably pushes up prices. And the ability to even slightly increase their budgets causes prospective buyers to feel more confident, putting more people in the market and increasing competition.
Indeed, many hopeful first-home buyers might be feeling that now is the right time to act; still more might find their anxiety rising: they want to buy, but will the market fluctuations put their dream out of reach once again?
It’s a valid concern, and the reason why the new homes market might provide an option to get a foot on the property ladder.
Building or buying an off-the-plan home could expand first-home buyers' possibilities. Image: Unsplash
Many states offer incentives for buying and building new. Alone or in addition to first-home buyer grants, these can significantly decrease the amount of upfront cash that a buyer needs.
Looking off the plan could be another option too, given that buyers can often get in with a smaller deposit to lock down their future home, and use the time it takes to complete the build to save up for a larger deposit, which is when they will apply for a mortgage.
Below, find a state-by-state breakdown of the incentives on offer for getting into the market with a new build.
New South Wales
NSW has two schemes that could potentially save first-home buyers substantial cash on a new home. The first is the First-Home Owner Grant (New Homes) Scheme, which provides $10,000 to eligible first-home buyers who build a new home valued up to $750,000.
NSW also offers the First-Home Buyer Assistance Scheme, which provides an exemption or concession on stamp duty for first-time buyers. What many people don’t know is that it’s not just for buying an existing home – this can also be applied to vacant land.
Under the scheme, buyers can get an exemption on transfer duty for vacant land valued up to $350,000 and a concessional rate for transfer duty for land valued between $350,000 and $450,000.
New apartments are springing up in Sydney. Image: Getty
Victoria
Victoria has made a big push to incentivise buyers into the new homes market, by introducing a full exemption from stamp duty for any buyers of new builds at any price. This popular program, which was set to run out after 12 months, has recently been extended through October 2026, giving Victorians more chance to snap up or break ground on a brand new home.
The state also runs the First-Home Owner Grant, which is just for first-time buyers who build or purchase a new home. Through this scheme, they can access a $10,000 grant on properties valued up to $750,000.
Queensland
Recent stamp duty alterations in the sunshine state have made it cheaper for first-time buyers to get into the market if they buy a new home.
Tax changes that came into effect in May removed the cap on property price for first-time buyers accessing a stamp duty exemption, but only if they build or buy a new home or vacant land. This means FHBs in can get a complete waver on transfer duty while the scheme is running.
Queenslanders can also access a $30,000 payment under the state's First-Home Owner Grant if they have never owned a home and are prepared to build or purchase off-the-plan.
Apartments under construction in Queensland. Image: Getty
South Australia
South Australia has the First-Home Buyer Stamp Duty Relief program, which allows first-home buyers to access an exemption on stamp duty on land or new properties, with no price caps.
The state also offers the First-Home Owner Grant, which is a one-off payment of up to $15,000 for eligible first-home owners who are buying or building a new residential property which will be used as a principal place of residence.
Western Australia
WA provides $10,000 to eligible first-home buyers who build a new home in the state under its First-Home Owner Grant, with the value of the property capped at $750,000.
First-home buyers can also access a stamp duty exemption or concession on properties whether new or existing, and it also offers a reduction for buying land on which to build. First-time buyers can skip paying stamp duty all together on land valued up to $350,000, and access a reduced rate on land valued between $350,000 and $450,000.
Tasmania
First-home buyers building or buying a new home in Tasmania can access the state’s First-Home Owner Grant of $10,000 toward the purchase price of their property.
The state also offers a 50% stamp duty concession to any buyer who purchases an off-the-plan apartment.
Builders in Hobart can access a $10,000 grant.
Australian Capital Territory
The ACT offers the Home Buyer Concession Scheme for all first-home buyers, regardless of the property they are buying. Savings here can amount to $34,270, depending on the price of the property. Income caps apply.
The state also offers a stamp duty exemption on off-the-plan apartments valued up to $1m.
Northern Territory
The NT’s First-Home Owner Grant is one of the most generous in the country, providing $50,000 to eligible first-home buyers who buy an eligible house and land package in the NT.
The territory’s House and Land Package Exemption (HLPE) also helps buyers avoid stamp duty on new homes. Eligible house and land packages attract no stamp duty in the NT regardless of whether the buyer has owned property before or not.
Are you interested in building or buying off the plan? Check out our dedicated New Homes section.
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