MELBOURNE SUBURBS DOMINATE ENQUIRIES FROM FIRST HOME BUYERS
Demand for properties from first home buyers is higher than at any time since 2008. In the month of October first home buyers accounted for 35.3 per cent of all owner-occupier loan commitments, which was 3.4 per cent higher year on year.
First home buyers have been encouraged to enter the market in higher numbers thanks to a number of state and federal government incentives – including the Federal Government’s Home Builder Grant, the first home buyer deposit scheme and Victorian Government’s 50 per cent stamp duty discounts – combined with record-low interest rates.
Data from realestate.com.au shows that first home buyers have been targeting more affordable homes in the outer suburbs where they can take advantage of the federal and state government incentives for new builds.
Suburbs in Melbourne dominate national first home buyer enquiries, with 8 of the top 10 suburbs for houses and 7 of the top 10 suburbs for apartments. The outer suburbs of Tarneit, Craigieburn, Point Cook, Pakenham, Clyde North, Werribee, Truganina and Wollert where there are a large number of new housing estates with house and land packages for around $600,000 dominate enquiries for houses. For apartments, the inner and middle-ring suburbs of Melbourne, St Kilda, South Yarra, Carnegie, Preston, and Footscray have the largest number of enquiries with some first home buyers looking to target suburbs which provide the amenities and lifestyle attractions not offered by the outer suburban housing estates.
The outer Melbourne suburb of Tarneit was the number one suburb in Australia for enquiries from first home buyers, with local agents reporting that up to 80% of sales were to first home buyers. One of the key attractions of Tarneit is that it is possible to buy a land and house package under $600,000, which means first home buyers in the suburb avoid paying stamp duty as the property will fall below the Victorian government’s $600,000 cap for stamp duty exemption.
Sydney had the second largest number of inquiries from first home buyers looking to buy houses, with 2 of the top 10 suburbs. Suburbs targeted in Sydney include Schofields and Blacktown. Sydney also had 2 of the top 10 suburbs for apartments with Parramatta and Blacktown, two western suburbs with a large number of new apartment builds and significant amenities and lifestyle attractions. The regional NSW city of Wollongong was the remaining city to appear on the top 10 list for first home buyers targeting apartments.
Schofields in Sydney’s western growth corridor has a median house price of $842,500 and according to local agents around 95% of purchasers in the suburb are first home buyers. The median price point places Schofields under the $950,000 cap for those accessing the first home buyer deposit scheme.
The most popular suburb for first home buyers in Queensland is Upper Coomera on the Gold Coast, which has a median price point of $515,000 and an easy commute to Brisbane. In South Australia, the most popular suburb for first home buyers is Morphett Vale.
While the Home Builder Grant is due to finish in March, it is likely that first home buyer activity will reduce slightly, but it is still likely to remain relatively strong by historical standards due to the other government incentives and extremely low interest rates.
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WEEKLY ARTICLES
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