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For first home buyers in South East Queensland, the choice between a new build and an established property feels like it should come down to price. But when you run the real numbers, including grants, stamp duty, maintenance costs, and long term capital growth, the picture looks very different from what most buyers expect.
Entry level established properties in SEQ, typically two to three bedroom townhouses in more established suburbs, are currently sitting in the $750K to $820K range. New house and land packages in growing communities like Flagstone, Yarrabilba, and Caboolture are landing in a similar range, but for considerably more: four bedrooms, a double garage, a full backyard, and a brand new home.
On the surface those numbers look similar. Once you apply the grants, stamp duty, and maintenance reality, they stop being similar very quickly.
Queensland’s First Home Owner Grant is currently worth $30,000 toward the purchase or construction of a new home. There is no First Home Owner Grant available for buyers of established homes. This boosted amount applies to contracts signed between 20 November 2023 and 30 June 2026, which it reverts to $15,000.
Stamp duty is where the difference becomes even more significant. From 1 May 2025, first home buyers purchasing a new home or vacant land in Queensland pay zero stamp duty with no property price cap.
For established homes the rules are different. First home buyers pay no stamp duty on established homes under $700,000, with a concessional sliding scale applying between $701,000 and $800,000. Over $800,000 no concession applies and full stamp duty is payable.
This matters enormously in the $750K to $820K price range where most SEQ first home buyers are shopping. A buyer purchasing an established property at $780,000 will pay partial stamp duty. A buyer building new at $780,000 pays nothing. Combined with the $30,000 grant available only to new build buyers, the total upfront financial advantage of building new sits between $40,000 and $55,000 before a single mortgage repayment is made.
This is where buyers of established properties consistently get caught off guard. The standard industry guidance is to budget at least 1% of your property value per year for maintenance. On a $750,000 home that is $7,500 every year minimum, rising to 1.5% to 2% annually for homes over 20 years old.
Over five years that adds up to $37,500 to $75,000 in maintenance costs, not including body corporate. Strata fees on townhouses range from $3,000 to $10,000 annually, meaning a townhouse buyer could spend $15,000 to $50,000 in body corporate fees alone over five years, on top of their mortgage.
Most first home buyers underestimate these costs by 40% to 60%. A new build sidesteps this entirely. Builder warranties, modern fixtures, and a home where the maintenance clock starts from zero mean your financial breathing room in those critical early years is substantially better.
Houses have consistently outperformed units and townhouses in long term capital growth. CoreLogic’s head of research has noted that units present strata challenges and lower capital growth prospects compared to detached houses. The reason is straightforward: land compounds in value. Strata title does not.
For a first home buyer the practical consequence is significant. A townhouse purchased today at $780K may sell in ten years for considerably less than a house bought at the same price, simply because the land underneath a house keeps appreciating in a way a unit or townhouse cannot match.
Established property
2-bed townhouse
Purchase price: $780,000
New build
4-bed home
Purchase price: $799,000
5-year financial advantage — Buyer B
$85,000 – $105,000
Roughly equivalent to two years of mortgage repayments.
Established properties are generally closer to Brisbane with better access to transport and employment hubs. For buyers whose work genuinely requires inner city proximity, that is a real consideration worth weighing.
But here is what that calculation often misses. Most first home buyers in SEQ are young couples, and the majority are planning to start or grow a family within the next five years. That changes the equation significantly. A two bedroom townhouse that works well for two people today can feel very small, very quickly, once a baby arrives. And when that happens, the choice becomes either squeeze into a space that was never designed for a family, or sell up and move, with all the costs, stress, and disruption that brings.
A house and land package, by contrast, grows with you. An extra bedroom means a nursery without sacrificing a home office. A backyard means somewhere for children to actually play. The flexibility to stay as your family expands is built into the property itself, and that flexibility has real financial value that rarely appears in a simple price comparison.
The question then is not just whether the location advantage of an established property is worth the higher upfront costs – it is whether a smaller, older property closer to the city is genuinely the right fit for where your life is heading over the next five to ten years. For most young buyers planning a family, the honest answer is increasingly no.
The financial case for new builds in SEQ has never been stronger. Zero stamp duty with no price cap, a $30,000 grant, lower maintenance costs, and better long term growth prospects all point in the same direction. The grant reverts to $15,000 after 30 June 2026, making the current window particularly valuable for buyers who are ready to move.
You only get one opportunity to use these incentives. The numbers suggest it is worth using them wisely.
Over five years that adds up to $37,500 to $75,000 in maintenance costs, not including body corporate. Strata fees on townhouses range from $3,000 to $10,000 annually, meaning a townhouse buyer could spend $15,000 to $50,000 in body corporate fees alone over five years, on top of their mortgage.
Most first home buyers underestimate these costs by 40% to 60%. A new build sidesteps this entirely. Builder warranties, modern fixtures, and a home where the maintenance clock starts from zero mean your financial breathing room in those critical early years is substantially better.