This is double the previous $15,000 grant, and will be available until 30 June 2025 when it expires.

Along with Tasmania, Queensland now has the joint highest First Home Owner Grant (FHOG) available in Australia - more than triple that of New South Wales and Victoria, where the equivalent grant is $10,000.

Premier Annastacia Palaszczuk said her government continues to be committed to easing the pressure on Queenslanders in the current climate.

"We understand that families are hurting, there's big cost of living pressures out there, and our government is making this small step to help people get into the market," she said yesterday.

Dr Diaswati Mardiasmo, Chief Economist at PRD research, thinks this increase will "tremendously" assist first home buyers who are on the brink of signing a contract, but also called it a double edged sword that could make Queensland property more expensive.

"History tells us that home owner grants, whether state level by itself or in combination with federal grants, have played a role in property prices," she told InfoChoice.

"On a medium and long term [grants]...increase house prices, and at the moment due to our very tight supply issues, it will potentially play a more significant role."

Property prices across Australia are fast approaching new record highs, with Brisbane one of the cities experiencing the strongest growth.

Low supply still a problem?

For Dr Mardiasmo, extending the FHOG still does not address the underlying problem facing first home buyers.

"Demand is not the issue, the issue is supply, and we have seen a big increase in residential construction backlog from 2021 to now," she said.

High interest rates and swelling costs have seen low levels of residential construction throughout Australia.

Lending for the construction or purchase of new property is at the lowest point in 20 years, while approvals for new residential projects are also at the lowest in a decade.

According to the Housing Industry Association (HIA) New Home Sales Report for October, new home sales in Australia dropped 8.1% over the month.

In Queensland, new home sales rose by 10.8%, but were still down 15% from the same time last year.

HIA Senior Economist Tom Devitt says Australia is heading for its weakest year of new house commencements in over a decade.

"The RBA’s November decision to continue the steepest hiking cycle in a generation risks further deepening and prolonging this trough in home building," he said.

Eligibility for Queensland $30,000 First Home Owner Grant

Those applying for the updated FHOG need to:

• Be over the age of 18
• Have not owned residential property in Australia

The property:

• Must be valued less than $750,000, including land and contract variations
• Must not have been lived in or sold as a place of residence at the time of completion.
• Can be a house, unit, duplex, townhouse or granny flat

The following are all eligible the transactions:

• Purchase of a new home
• An off the plan purchase
• Substantial renovation
• Contract to build
• Owner-builder

Read more: Queensland First Home Owner Grant (FHOG)