INCREASED incentives to buy new property in regional Victoria were announced in last week's State Budget.

First home buyers in regional Victoria will receive a bonus of $26,500 when buying a new home, an increase of $4000.

But first home buyers who purchase an existing property will lose $2000, with grants falling from $9000 to $7000.

Real Estate Institute of Victoria chief executive officer Enzo Raimondo welcomed the grant boost but called for a reduction in stamp duty to assist home buyers.

"Affordability of housing remains a serious problem in Victoria," he said.

"The Government's failure to revise stamp duty rates means that anyone buying an average home now will pay, as a percentage of the purchase price, a higher amount of stamp duty than they ever have before."