How State Grants and Stamp Duty Concessions Are Shaping Melbourne’s First Home Buyer Market Right Now

Victoria’s suite of grants and stamp duty relief for first home buyers is making some neighbourhoods more attainable—just as median house prices push record highs. From Brunswick West’s new townhouses to Frankston’s family homes, buyers taking their first leap are shaping their options around these sweeteners.

More Help, But More Competition

Right now, the State Government offers first home buyers a $10,000 First Home Owner Grant (FHOG) for brand-new properties up to $750,000. On top of that, eligible buyers pay no stamp duty on homes valued up to $600,000 and receive a sliding concession up to $750,000 (with savings of up to $31,070, according to State Revenue Office figures). The move is designed to tip the scales for young professionals and families squeezed by Melbourne’s $920,000 median house price. In suburbs like Sunshine and Heidelberg West, agents told The Daily Melbourne up to half their recent first home sales involved buyers grabbing these deals.

“It’s the most significant boost we’ve got,” said one senior local agent in Southbank, where new one-bedroom apartments with prices around $630,000 are prime targets for grant seekers. “It can be the difference between a deposit scraping over the line or not.” Others point out that in Frankston corridor, the $10,000 kickstart has nudged young couples back to off-the-plan townhomes, turning streets like Beach Street into first home hunting grounds again.

Where the Numbers Stack Up

The impact is most visible in price brackets hugging these upper limits. In the 12 months to June 2026, REIV data shows that 38% of first home buyer transactions in Greater Melbourne clustered just under the $750,000 threshold—particularly in growth zones like Preston and Cranbourne. Treasury records indicate more than 9,600 Victorians drew down a stamp duty exemption or concession during the 2025–26 financial year.

New apartment stock along Victoria Street, Richmond, has also seen an uptick in first-time buyer activity, with developers marketing remaining lots at $599,000 specifically to keep buyers eligible for the full stamp duty waiver. Meanwhile, Properties in Oakleigh and Reservoir are still seeing strong open-for-inspections, particularly those priced to fall inside the grant envelope: “If the FHOG applies, our phones run hot,” another agent told this reporter at a Sapphire Street listing last Saturday.

Those eyeing more established homes—such as terrace houses on Albion Street, Brunswick—face trickier maths. Unless the house sells under $600,000 (increasingly rare inside ten kilometres of the CBD), buyers can’t access the headline stamp duty savings, though some are still eligible for lesser discounts.

For up-to-date eligibility checks, the Victorian State Revenue Office has a purpose-built online calculator, and major lenders on Lonsdale Street confirm they refer every first home applicant to these incentives as part of loan assessment. Mortgage brokers across the city confirm these sweeteners are often factored into buyers’ maximum bids.

Next Steps for Buyers

With July’s round of listings opening up, would-be buyers are urged to get pre-approval and confirm their grant eligibility before negotiating. Developers like Mirvac and Stockland are actively pitching incentives to first-timers inside the FHOG and stamp duty bands at display suites in Ascot Vale and Clyde North. Legal and conveyancing experts warn buyers to check that contracts allow for settlement timelines in case approval paperwork is delayed by government processing.

For buyers on the cusp—particularly in rapidly gentrifying pockets like Thornbury, where two-bedroom units hover around $690,000—timing and negotiation over inclusions can bring a property under the grant ceiling. With government policy subject to annual review, first home hopefuls in Melbourne’s inner and middle suburbs are advised to act sooner rather than later if they want those headline concessions to help close the gap.