The Federal Government's HomeBuilder scheme has proved popular in Bendigo, with more than 100 applications received by the State Revenue Office.
A $25,000 grant is available to applicants building a new home, where the house and land is valued at $750,000 or less, or for renovations ranging between $150,000 to $750,000.
A State Revenue Office spokesperson said there have already been 115 applications submitted from Greater Bendigo.
"Applicants are required to confirm the next step of their eligibility when construction of their new build or renovation commences within the next six months," the spokesperson said.
The grant is covered by strict eligibility criteria, including income tests and construction start dates.
With new homes, grants will be paid after the foundations have been laid and the first progress payment has been made.
For major renovations with a value of at least $150,000, the grant will be paid after construction has begun.
Tweed Sutherland First National director Matt Leonard said first home buyers have jumped on the opportunity to enter the market.
"First home buyers could be eligible for the $20,000 First Home Owner Grant and the $25,000 HomeBuilder grant and that has proven an incredible incentive to enter the market," Mr Leonard said.
"The problem has been a shortage of land, with land that is going to be titled prior to the end of the year and the first quarter of 2021 already sold.
"We have even sold land that is not settling until July 2021, which won't qualify for the HomeBuilder grant, but that hasn't slowed land sales."
New homes builder Burbank said it has experienced a surge in demand for new homes in Bendigo.
Burbank Group managing director Jarrod Sanfilippo said the coronavirus pandemic has shown that regional Victoria is the place to be.
"We expect the number of people choosing to build regionally will continue to grow over the coming months due to the grants available and record low interest rates," Mr Sanfilippo said.
"If you're a regional first home buyer, you could potentially be eligible for up to $45,000 worth of grants, which is a real boost."