New lending data has revealed western Sydney is leading the way as a first home buyer hotspot, according to NAB.
Despite a decline in property sales so far throughout 2022, a number of metropolitan and regional areas have seen strong growth in first home buyer activity in the June quarter compared to the first three months of the year.
NAB’s Australia’s first home buyer suburb hotspots data revealed that of the seven most popular areas in greater Sydney for first time buyers, six of these were in western Sydney. The southern Sydney beachside suburb of Maroubra topped the list for strongest demand between April and June 2022 (up 269%).
The list of metropolitan Sydney postcodes with the highest first home buyer growth is as follows:
For regional NSW, the 2530 postcode (Dapto and surrounding suburbs, south of Wollongong) topped the list with 79% growth, followed by 2800 in the Orange region, up 40%.
The bank also revealed suburbs in the south-east of Melbourne continued to provide great value and location for first home buyers, with Dandenong drawing plenty of attention. Meanwhile in Brisbane, Fortitude Valley proved a first home buyer hotspot between April and June.
NAB executive home ownership Andy Kerr (pictured above left) said the benefits of hybrid working continued to give Australians options to buy in areas they previously might have not considered.
“Flexible working is one of the biggest trends over the last decade when it comes to changing the game for property sales,” Kerr said. “The option to work from home is giving first home buyers more choice when it comes to location. Suddenly, a slightly longer commute when made a few times a week becomes a serious consideration.”
Kerr said with a combination of house prices declining and the recent release of the First Home Guarantee Scheme, there was renewed optimism for first home buyers.
“We also know there are some people who are feeling the pressure of a rising cost of living,” he said. “For anyone who is concerned, please get in touch with your bank – the earlier the better.”
Western Sydney mortgage broker Sze Chuah (pictured above right) of MLS Finance said first home buyer activity had definitely picked up in his local market.
“Our clients are looking to jump in at a discounted price where there is opportunity and are acting quickly in an attempt to take advantage of it,” Chuah said. “There was a lull in the first home buyer purchases moving into the end of last year and early this year, but we have seen a shift in the market and a large increase over the last month or two, especially since interest rates have started to rise.”
Chuah said his brokerage was heavily investor focused, however his team was always happy to work with first home buyers who decided to purchase a property in a location that they could afford and rent in an area that they would prefer to live in.
“The rent investor's goal is to build enough wealth to one day secure a property in their dream suburb. We are seeing some of our rent investors manage to secure their ideal home due to falls in property prices,” he said. “I believe first home buyers struggling to buy into the current market should take advantage of the government incentives.”
Chuah said he suggested to his clients to that they regularly review their outgoing costs and create a budget and savings plan to ensure they are aware of all outgoings.
“This can create more discipline and a larger nest egg faster,” he said. “We also encourage our clients to pay off debt and credit cards and avoid products like Afterpay, which negatively affect a clients credit rating and ability to get finance.”
