The balance has shifted, but first home buyers still face a hard affordability test
The 2026 policy changes were designed in part to give owner occupiers more room in the housing market. The Federal Government says its negative gearing and capital gains tax reforms are estimated to support an additional 75,000 homeowners over a decade. In Queensland, first home buyer assistance has also been strengthened around new homes.
That does not suddenly make Brisbane affordable. PropTrack put Brisbane’s median dwelling price at about $1.073 million in June 2026, even after a 0.2 per cent monthly decline. For first home buyers, the advantage is more likely to appear as reduced investor competition and better negotiating conditions than as dramatically cheaper homes.
The Federal Budget changes investor demand for established homes
From 1 July 2027, investors who bought established residential property after 7:30pm AEST on 12 May 2026 will not be able to deduct rental losses against unrelated income such as salary. Qualifying new builds retain negative gearing. The Government has also announced changes to capital gains tax from 1 July 2027.
For first home buyers targeting established units, townhouses and entry level houses, this could matter. If some investors step back or shift towards new builds, owner occupiers may face fewer competing offers. Early market reporting suggests that investor activity has already softened in parts of south east Queensland.
Queensland’s $30,000 grant continues for eligible new homes
The Queensland 2026 to 27 Budget continued the $30,000 First Home Owner Grant for eligible contracts signed from 1 July 2026. The grant applies to eligible first home owners buying or building a brand new home and has its own eligibility rules.
Queensland also offers a first home new home transfer duty concession. For qualifying contracts dated 1 May 2025 or later, QRO says there is no value cap for the new home and residential land attributed to it. Buyers need to check the current eligibility rules carefully rather than assuming every first purchase qualifies.
There is an important Queensland change from 1 August 2026
From 1 August 2026, buyers seeking a home, first home or first home vacant land transfer duty concession must be Australian citizens, permanent residents or specified foreign retirees. That is a significant eligibility change for temporary residents and should be checked before signing a contract.
For an established first home, the standard first home concession currently applies to eligible homes valued under $800,000, with savings of up to $24,525. QRO notes that the ordinary home concession may still apply above that threshold. Buyers should use current QRO guidance because duty can materially change the cash needed at settlement.
What can a first home buyer realistically target in the Inner North?
The June 2026 Inner North report shows why property type matters. Median house prices were $1.369 million in Stafford, $1.58 million in Kedron and $1.66 million in Alderley. Those medians put many detached homes beyond typical first home budgets.
Units create a different entry point. The report recorded median unit prices around $762,100 in Kedron and $796,000 in Newmarket, with other sampled Inner North unit markets generally in the high $700,000s to mid $800,000s. That brings some stock closer to the established first home concession threshold, although individual prices and eligibility must be checked.
Investors still have advantages of their own
It would be wrong to assume first home buyers now have the market to themselves. Investors may have larger deposits, equity from other property and the ability to act without coordinating a home sale. Some will also pivot towards new builds where the tax treatment is more favourable.
The contest will vary by property. A new apartment may attract investors because of negative gearing treatment and first home buyers because of Queensland concessions. An established unit may see less investor demand. A family house in a popular school area may be dominated by upgrading owner occupiers instead.
Softer conditions can help disciplined first home buyers
Cotality reported in July that buyer demand had cooled and vendor discounting across the combined capitals had increased. PropTrack also recorded Brisbane’s first monthly price fall in three and a half years in June. These are modest changes, but they can give buyers more time.
Use that time well. Have finance organised, understand duty and grant eligibility, decide which conditions you need and compare the property with recent local sales. A quieter market is valuable only if it leads to a better decision.
The biggest advantage is knowing your lane
First home buyers do not need to beat investors across Brisbane. They need to understand the small part of the market where their budget and concessions create an advantage. That may mean a new home where grant and duty settings help, or an established unit where investor demand has softened.
Do not stretch simply because a grant is available. A $30,000 grant is useful, but it should not turn an unsuitable or overpriced property into a purchase. The property still needs to fit your life and remain financially manageable.
FAQs
Is the Queensland First Home Owner Grant still $30,000? Yes. The 2026 to 27 State Budget continued the $30,000 grant for eligible contracts from 1 July 2026.
Do first home buyers pay no stamp duty on every property? No. Queensland has different concessions for new homes, established first homes and vacant land, with specific eligibility rules.
Have first home buyers definitely overtaken investors? Not across the whole market. Policy changes may reduce investor competition in some established property segments, but competition varies by property type and location.
