The relief is directed towards newbuilds, which, of course, have GST. GST doesn't apply to existing housing for the most part. Because it's directed at new homes, this incentive, which is fairly generous, is intended to encourage first-time homebuyers to consider a new home rather than an existing home. That should increase demand for the new home market. There should be a supply response from builders, who will then construct new homes to meet that additional demand.
