This article is from the Australian Property Journal archive
MELBOURNE’S western and northern suburbs are still the top spots for Australian first home buyers in 2023, with Hoppers Crossing and Craigieburn.
According to new data from NAB, first home buyers activity was steady across the second half 2022 even with the challenging macroeconomic factors facing the market, despite shifts in activity seen in Helia’s data from November last year which shows the number of first home buyers targeting a 20% deposit fell again over the year.
“Value and location remain the two most important factors for first home buyers when looking to purchase their first property,” said Andy Kerr, executive of home ownership at NAB.
“Despite the overall market softening, first home buyers are bucking the trend with sales staying stable nationally and growing in some of the hottest suburbs such as Schofields in NSW.”
Across Victoria, approximately one in 10 first home buyers are choosing homes in the western 3029 postcode of Hoppers Cross, Tarneit and Trugania or in the areas surrounding Craigieburn in the 3064 postcode, with 3978 suburbs of Cardinia, Clyde and Clyde North taking the third spot.
Kerr noted that Victorian first home buyers are still being drawn to more suburban growth areas rich in amenity, with expanding transport links and new schools and parks.
These areas along key transport corridors are forecast as the centre of the population growth that will see Melbourne outpace Sydney by 2031.
“Outer metro growth areas like Tarneit in Melbourne, Hallett Cove, right near Adelaide’s southern beaches and suburbs south-east of Perth have great amenities, particularly for young families,” said Kerr.
“Many of these areas are also attractive areas for investors and have high growth over the past five years as well as good rental yields.
In NSW, Schofields in Sydney’s north-west was named the number one top spot for first home buyers, after recording a 63% increase in demand in the last quarter of 2023.
Schofields’ increased popularity was no doubt down to the completion of new housing developments and off-the-plan properties that are eligible for state government assistance schemes, the likes of which are driving steady first home buyer activity.
According to data from the NHFIC, most states saw a higher proportion of guarantees in 2021-22 using the First Home Loan Deposit Scheme than in previous years, with around one in seven first home buyers supported by the scheme, compared to around one in 10 over 2020-21.
Similar patterns can be seen in the suburbs of the number two and number three spots for NSW, within the 2765 and 2170 postcodes.
“Schofields and Liverpool are some of the most in-demand suburbs for first home buyers in NSW, with new housing developments here falling within the price thresholds for a number of state government assistance schemes, and they have growing public transport options, retail and education precincts and parks in a suburban environment,” added Kerr.
In Queensland, the Garden City of Toowoomba was the top spot, due to its desirability amongst families with its close commute to Brisbane and schools and its expansive land sizes.
“With billions of dollars of investment coming down the pipeline on the Inland Rail Link and a new Toowoomba Hospital, the Garden City is shaping up as an exciting place to buy and live,” said Kerr.
The second spot was taken by 4207, which comprises Beenleigh and Yarrabilba, while 4300 with Springfield Lakes and Goodna rounded out the top three.
The top three in Tasmania includes: 7320 – Burnie, Acton, Camdale; 7011 – Berriedale, Chigwell; and 7310 – Devonport, East Devonport.
While in the ACT: 2602 – Dickson, Watson; 2913 – Casey, Franklin; and 2617 – Bruce, Lawson.
And finally in the Northern Territory: 0810 – Nightcliff, Casuarina; 0870 – Alice Springs, Gillen; and 0832 – Rosebery, Bakewell.
“The popularity of these areas for first home buyers remained strong throughout the second half of 2022 and we expect to see steady demand early this year, as first home buyers look to areas representing the best value,” concluded Kerr.
