FAR Northern leaders will welcome city slickers with open arms if the State Government boosts the first home-owner's grant to lure them north.

Mayors and business owners yesterday said Premier Anna Bligh's idea of adding $3000 to grants for first home owners outside the southeast corner was a win-win situation for the whole of Queensland.

Ms Bligh floated the concept in Brisbane, saying her Government would investigate a grant hike as one of a raft of initiatives to help relieve huge population growth pressures in the southeast.

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The extra money, to be funded by the State Government, would be directed at existing residents and those moving from interstate to regional centres such as Cairns, Mareeba and Innisfail.

Ms Bligh said figures showed 70 per cent of new arrivals to Queensland settled in the southeast and it was critical for the Government to investigate new strategies to encourage regional growth.

"With generally cheaper housing prices outside the southeast corner, this could create a strong pull factor for more new residents to settle in the regions and to keep more young people in our regions as well," she said.

"(But) if we want to support stronger regional communities, we need more jobs in the regions. That means providing the infrastructure and services young people need so they have an opportunity to build a future in regional Queensland."

Advance Cairns chairman Russell Beer believes the city's highly publicised three-point plan - designed to dig Cairns out of its economic malaise and reduce its horror 13.8 per cent unemployment rate - is making an impact.

"That the Premier and the Queensland Government are thinking about this is an extremely good sign," he said.

"The point we keep making is it will cost a lot more money to expand in Brisbane than it will in North Queensland where we have plenty of land and water."

Cairns Regional Council Mayor Val Schier said she welcomed any incentives.

"The council has been planning for increased numbers - up to an additional 100,000 people in the next 20 years. However, at this stage we also need jobs," she said.

"We have a whole list of shovel-ready projects and we need the State and Federal governments' assistance."

Cassowary Coast Mayor Bill Shannon said his shire was ready with a huge demand for unskilled labour and with an impetus needed for the building industry.

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