THE number of first home buyers in Queensland continues to drop since the removal of the First Home Buyers Grant.
The Real Estate Institute of Queensland (REIQ) says the although the real estate market in Queensland exceeded expectations for the second quarter in a row, some first home buyers feel shut out of the market.
The government scrapped the $7,000 grant in October and replaced it with a $15,000 boost for those buying off-the-plan or newly-constructed properties, in a bid to stimulate the construction industry.
Chief Executive Anton Kardash said first home buyers typically buy established homes in established suburbs, instead of newly constructed homes in outer areas or apartments with expensive body corporate fees.
"Unfortunately, the numbers of first home buyers active in the market continues to trend downwards," he said.
"We're not surprised to see the fall off."
The REIQ says the Queensland real estate market improved for the second quarter in a row.
House sales increased by eight per cent, compared to the same period in 2011.
"There is no doubt that the Queensland market is improving due to the low interest rate environment, increasing confidence levels, an element of pent-up demand, as well as a more settled economic outlook here and overseas," Mr Kardash said in a statement.
Tourism centres enjoyed substantial jumps.
The numbers of house sales were up 27 per cent on the Sunshine Coast, 25 per cent in Cairns, and 19 per cent on the Gold Coast compared to the December quarter in 2011.
Across Queensland's major regions, median house prices were mostly stable.
However, Toowoomba's prices increased by 6.2 per cent to $308,000 and Mount Isa recorded an eight per cent rise to $370,000.
The Brisbane median house price increased 0.4 per cent to $510,000.
Mining centres saw drops in house prices, as their markets start to return to normal.
House sale activity dropped 37 per cent in Gladstone and 17 per cent in Mackay.
Their median house price dropped 2.9 per cent and 5.6 per cent respectively.
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