Mr Morris, author of the Midwood Queensland Investment Report, said raising the grant for newly built homes to $42,000 and extending it beyond the June 30 deadline, would 'get the market moving' in locations such as The Observatory at Reedy Creek.

He said there was not enough incentive for new-home buyers wanting to purchase a Coast property, where house-and-land packages averaged $500,00.

"First-time buyers generally don't have enough for a deposit for those amounts, so $42,000 would be helpful," he said.

Mr Morris was responding to the latest Australian Bureau of Statistics housing finance figures which showed 90 per cent of first-home buyers were using the $14,000 boost grant to buy existing homes.

In January $187 million was paid in grants for used homes, with only $12.7 million allocated  for new homes.

However, Mr Morris said buying existing homes didn't do nearly as much for the local economy.

"A new-home owner engages most of the skilled trades, together with suppliers of items such as concrete, bricks, glass, carpets and curtains," he said.

However, Real Estate Institute of Queensland chairman Peter McGrath siad an overhaul of charges on new developments would be a more effective way to increase new home sales.