There are claims the Tasmanian Government's first home builders grant is misguided, despite signs of a pick-up in construction.
The Real Estate Institute says first home builders represent less than 8 per cent of the Tasmanian market.
The institute's Mark Berry says there needs to be more financial support for the majority who buy existing homes.
"This first home builders grant is failing for the simple fact that the stats are showing that the approvals are down 27 per cent," he said.
"Real estate sales are at their lowest level for the last 20 years, so the real estate industry as a whole, including the builders, need some kind of incentive to create the market." But the building industry has recorded its strongest quarterly results in more than a year.
In September, building starts fell only 0.4 per cent.
The Housing Industry Association's Stuart Clues says it is encouraging.
"The industry has stopped haemorrhaging and we're now on the up." The Premier, Lara Giddings, says the grant is expected to create 1,800 jobs and stimulate the construction of 1,100 new homes.