National Bank of Australia (NAB) saw lending to first home buyers (FHB) surge over the first four months of 2021, even as the rush into regional areas slowed down from last year’s substantial growth.
The major bank saw lending to first home buyers increase by 67% in period between January and April 2021 compared to the corresponding period last year, and by 9% against the final four months of 2020.
On a year-on-year basis, Queensland and Western Australia led the way, with FHB lending growth over 90%.
Compared to the final four months of last year, however, Victoria is the frontrunner, with FHB activity up 26% and driven entirely by metro areas.
“The level of first home buyer activity has been like nothing we’ve seen in a generation,” said Andy Kerr, executive, home ownership at NAB. “We’ve received very strong demand for the First Home Loan Deposit Scheme (FHLDS) and are excited to re-open our doors to customers interested to buy their first home with support from the Scheme. We expect interest to again be incredibly strong.”
NAB data also revealed that regional areas across the nation recorded an 84% year-on-year increase in FHB activity, while metro areas rose 65% compared to a year ago.
However, against the preceding four months, regional FHB activity dipped by 4% compared to a 13% rise in metro area activity.
“It’s been interesting to see activity slow in regional areas from the final few months of last year, but over a 12-month period it’s clear the sea and tree change has been incredibly popular for first-time buyers,” said Kerr.
