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Oz govt urged to extend first time buyer grant

The Australia government's measure have been widely praised but there are now concerns that demand is exceeding expectations and the pool of cash is in danger of drying up.

If that happens then the boost to the real estate market will only be a temporary blip, some are claiming. Louis Christopher, from property advisory group SQM, said that while confidence was back in the market, the high percentage of first time buyers indicated the sales boost would be temporary.

Christopher raised the prospect of a further market crash because of a lack of substantial investment outside the first time buyer grant regime.

'First home buyers have always only made up a small part of the market and all the Government did with the increase to the grant was bring demand forward. They did not actually increase demand and it's going to need to level out eventually,' he explained.

The grant scheme, providing up to $21,000, will end on June 30 when grants will then revert to the previous maximum of $7000.

So there are calls for the Government to extend the grant scheme. 'There's no doubt that first home buyers are the reason for the recovery, but if the increase to the grant is not extended, we will see the market deteriorate after June 30,' said Yvonne Chan, head of property research at Australian Property Monitors.