AUSTRALIA (Commonwealth Union)_Falling house prices are driving a frenzy in some parts of Australia, according to new data that reveals the suburb hotspots for first-time home buyers.
According to NAB data, Melbourne’s expanding western and northern suburbs remain the top Australian places for first home buyers this year, but a district in Sydney’s northwest is fast narrowing the gap. In Victoria, one out of every ten first-time buyers chooses to buy near Hoppers Crossing in Melbourne’s west or Craigieburn in the city’s north.
Meanwhile, Schofields in Sydney’s northwest growing suburbs leads the list of first homebuyer hot areas in NSW, with a 63% increase in quarter-on-quarter demand at the end of last year. According to NAB analysis, this has been driven by the completion of several new home developments and off-the-plan properties eligible for state government assistance initiatives.
To the north, the top first-homebuyer suburbs in Queensland were in Toowoomba, including Darling Heights and Drayton. Three of the top five destinations in Queensland for first home buyers were in regional cities outside of Brisbane, such as Mackay and Bundaberg.
Andy Kerr, NAB’s executive director of home ownership, said first-time buyers were not deterred from entering the property market and were looking for opportunities despite shifting market conditions.
“When looking to acquire their first property, value and location remain the two most essential aspects for first home purchasers,” he said.
“Despite the overall market cooling, first home buyers are bucking the trend with sales maintaining consistent nationally and expanding in some of the hottest suburbs such as Schofields in NSW.
“Outer metro growth regions, such as Tarneit in Melbourne, Hallett Cove near Adelaide’s southern beaches, and suburbs southeast of Perth, provide exceptional amenities, particularly for young families,” says the report.
“Many of these locations are also appealing to investors, with significant growth in the last five years and competitive rental rates.”
Hoppers Crossing, Tarneit, Truganina, Craigieburn, Donnybrook, Kalkallo, Mickleham, Roxburgh Park, and Cardinia, Clyde, and Clyde North are among the top sales in Victorian suburbs in the last six months.
“First home buyers in Victoria continue to be lured to growth areas to the north, west, and southeast of Melbourne, which provide good services, expanding transportation linkages, new schools and parks, and a more relaxed, suburban lifestyle,” said Mr Kerr.
“By 2031, Melbourne’s population is predicted to surpass Sydney’s, and these locations along significant transit routes will see that increase continue.”
Aside from Schofields in Sydney, Berkshire Park, Box Hill, Maraylya, Marsden Park, Nelson, Oakville, Riverstone, Vineyard, as well as Casula, Chipping Norton, Hammondville, and Liverpool, have been popular with first home purchasers. Lurnea, Moorebank, Mount Pritchard, Prestons, and Warwick Farm are also on the list.
“Schofields and Liverpool are among the most sought-after suburbs in NSW for first-home buyers, with new housing developments here falling within the price thresholds for a number of state government assistance schemes, and they have growing public transportation options, retail and education precincts, and parks in a suburban setting,” Mr Kerr said.
Toowoomba and its surrounding areas, Beenleigh, Yarrabilba, Springfield Lakes, and Goodna have all attracted first-time home purchasers in Queensland.
Suburbs in Western Australia such as Armadale, Harrisdale, Balga, Nollamara, Success, and Cockburn Central have been popular with first home buyers.
“The southeast of Perth is fast expanding, with easy access to transportation and employment, as well as affordable and sustainable housing,” he said.
“Recently opened schools and access to parks and woodlands allow first-time home buyers in Harrisdale to escape the hustle and bustle.”
Morphett Vale, Woodcroft, Hallett Cove, O’Halloran Hill, and Mount Barker have all proven to be popular among South Australia’s first home purchasers.
“Transportation upgrades make Morphett Vale, Woodcroft, and Hallett Cove even more enticing places to live and commute into the CBD,” he said.
“Mt Barker is a hidden gem in the Adelaide Hills, with easy access to growing amenities and pristine air.”