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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5 CAPITAL CITIES SET FOR PROPERTY PRICE BOOMS IN 2021
Experts are predicting widespread property price growth in 2021, with a number of cities earmarked for double-digit growth.
Simon Pressley, head of property market research and managing director at Propertyology (pictured), predicts that 5 out of 8 Australian capital cities will produce double-digit house price growth in the 2021 calendar, while 40+ non-capital city locations will crack 20% capital growth.
“Australia has just commenced an era of accelerated rates of home ownership and wealth creation, in a manner not seen since the five years ending 2005,” said Pressley.
AUSSIES SEE 2021 AS A ‘GREAT TIME’ TO BUY PROPERTY
2021 is tipped to be one of the busiest years for property ever as money remains cheap and readily accessible, with a majority of Aussies agreeing that now is a good time to buy.
Optimistic home buying sentiment has reached a pre-pandemic high in Australia, according to new research, which found that as many as 67 per cent of Aussies believe that now is a good time to buy, up from just 42 per cent in April 2020.
Back in April, consumer sentiment crumbled as Aussies braced for the worst recession since the Great Depression, but today, sentiment is well and truly on the rebound with Aussies looking to put their money in property, Finder’s latest research suggested.
TOP BROKER PREDICTS STRONG HOUSING MARKET THIS YEAR
After one of the most challenging years in recent memory, one broker has predicted a strong housing market in 2021 on the back of low interest rates, a spate of government-sponsored benefits, and pent-up demand for homes.
In a recent blog, Otto Dargan, founder and managing director of Home Loan Experts, revealed what he expects Australia’s property market to look like this year, along with some likely contributors to the sector’s growth.
“This would be a great time for first home buyers to get onto the property ladder, with a range of government incentives,” Dargan said.
10 PREDICTIONS FOR AUSTRALIA’S PROPERTY MARKET IN 2021
Now that the clock has ticked over from 2020 to 2021 and a COVID vaccine is Australia-bound, property investors are looking ahead to see what this year will bring for the property market.
2021 is tipped to be a big year for the property market despite a number of well-known economic challenges in the form of sluggish growth and trade tension.
But according to Knight Frank, the outlook remains bright as the market continues to respond positively to low interest rates and the weight of private and institutional capital seeking to be deployed.
COVID-19 VACCINE AND JOE BIDEN PRESIDENCY WILL INFLUENCE AUSTRALIAN FINANCES, SAYS LEADING ECONOMIST
It’s good news for many Aussies who experienced a tough time financially last year, with a top economist predicting the country is headed for economic recovery after the pandemic battered global markets.
Craig James, chief economist from CBA’s stockbroking firm CommSec, said a successful rollout of the COVID-19 vaccine would be key to the economy bouncing back.
“Europe and the US are currently experiencing second waves of the virus, driving case numbers to record highs and necessitating fresh lockdowns,” he said.
“The good news is that an effective vaccine is expected to be distributed across the globe, with vaccinations already commencing in the UK. And treatments for the virus are also being developed. The economic outlook will clearly be dictated by the virus and how quickly vaccines can stem case numbers and allow economies to start repairing.”
RENTAL VACANCY RATES HIT ZERO IN AUSTRALIAN COASTAL TOWNS AS THEY HIT COVID CAPACITY
The pandemic has brought on a property boom for surf towns as cashed-up city dwellers make a sea change. But while that is great for homeowners selling at high prices, it has created a nightmare for some renters.
Data supplied to ABC News by CoreLogic shows just how slim the availability of rental homes has become in several key coastal regions, including Byron Bay, Newcastle and the Gold Coast.
Demand has risen so far beyond supply that there is almost nothing sitting empty for potential renters.