The Commonwealth’s decision to lift the 5 per cent Home Guarantee Scheme price cap to $750,000 for Darwin from July 1 has been welcomed by industry, but questioned by stakeholders potentially impacted by the scheme.

Master Builders NT and Property Council of Australia both welcomed the changes, which followed months of discussions between government and stakeholders.

Outside Darwin the cap will remain at $600,000, but Property Council NT executive director Ruth Palmer said it now better reflected Darwin’s real estate conditions and would reduce upfront costs by avoiding lenders mortgage insurance.

“We thank Treasurer Bill Yan for his strong support and public advocacy, and we acknowledge the federal government for ultimately listening to the evidence and to Territorians,” Ms Palmer said.

“The new $750,000 cap better reflects Darwin market conditions and will open up significantly more homes to eligibility under the 5 per cent deposit scheme.”

Master Builders NT thanked Territory Treasurer Bill Yan and Solomon MP Luke Gosling for their contribution to having the cap lifted.

Master Builders NT chief executive Sallyann Innes said the decision also delivered certainty for the Darwin construction workforce.

“When residential activity is supported, it gives our builders confidence,” Ms Innes said.

“That certainty flows directly through the entire supply chain, including subcontractors, tradies and suppliers allowing businesses to maintain their workforce, invest in their teams and, in many cases, take on an apprentice.

“Housing policy isn’t just about home ownership it’s about jobs, skills and keeping our local construction workforce strong and sustainable for the next generation.”

In the broader Northern Territory, reaction to the announcement was mixed, with concerns the price cap increase would jack up house prices.

Keith posted: “Great, the value of my place is going to go up. Sadly more kids are going to be sucked in by this Labor brain fart and be out of their depth when interest rates inevitably rise. All reputable economists say it’s a dud scheme, inflating house prices and exposing buyers to great risk.”

On a related theme, Paddy warned of its impact on property prices: “The first-home owner scheme is the biggest con job in Australia. Uncontrolled immigration (I am originally from South Asia, but will call it out), not enough supply of new homes, yet the demand is being artificially increased through these handouts. Perfect recipe for disaster. It will help only the first few first-home owners before prices increase and affect the remaining first-home owners.”

Micko went into bat for the changes: “Stop whinging those below in the comments, the 5 per cent scheme is about reducing the cost of mortgage insurance. Has anyone tried to buy a house in Darwin for $600,000 and there’s not too much to choose from. This at least gives couples a chance to get a house that they can live in while starting a family.”