First-home buyers are still looking for bargains, despite rising house prices. Many people find their treasure in suburbs or metro areas.
NAB’s most recent data shows that first-home buyer lending rose by 77% in the period August to September. May was the peak month.
The metro area saw a 24% increase in first-home buyers over the same period, while regional activity increased by 16%.
Andy Kerr (NAB executive for homeownership) stated that the recent major shifts in Australian work practices have resulted in a diversification among buyer preferences.
He stated that there is a correlation between purchasing new buildings in the outer-metro area and buying them. This will help you to find bargains.
“Inner-city apartments are again drawing more attention as buyers eye areas where price growth is more subdued.”
These postcodes saw the largest increases in first-home buyer demand over the four-month period from August to August.
Hotspots For First-Home Buyers (May 2021 – August 2021).
|New South Wales
Brisbane, Gold Coast, and Sunshine Coast
|ACT and Tasmania
Greater Sydney is a magnet of buyers
Many areas within Greater Sydney experienced increased demand from first-home buyers before the lockdown. With a 134% rise in demand, Matraville was the worst affected.
Kerr said that there has been an astronomical increase in first homebuyers from south of Sydney, in Eastgardens or Matraville. Maroubra, which is a popular spot at the beginning of 2021 was also mentioned by Kerr.
Attention was also drawn to the western postcodes in Sydney which include West Ryde and Liverpool as well as Bankstown.
“The Central Coast is an area that’s particularly appealing to first-homebuyers. It has a very appealing lifestyle. Dapto was once more a popular choice for first homebuyers. It is just two hours from Sydney,” Mr Kerr said.
West Melbourne gains more strength
Many people are still looking for first-homes in Melbourne’s Western Markets.
“Preston has jumped out as a popular hotspot with nearby Northcote and Thornbury offering the best of Melbourne’s inner-north lifestyle,” Mr Kerr said.
“Cranbourne and Narre Warren in the south-east were again a standout with great access to public transport and the gateway to regions like the Mornington Peninsula and Gippsland.”
For first-home buyers, apartment living in Richmond or Southbank is an appealing option.
Positive outlook for Sydney and Melbourne
Kerr said that Victoria and New South Wales lockeddowns held their ground in recent weeks despite being locked down.
He said that seasonality will return as more stock is available on the market in spring.
“We believe that listings will rise towards 2021, especially in Melbourne as NSW and Victoria open more in the next weeks.”