that the additional time taken for a couple to save up a 20 per cent deposit to buy an entry-level house has increased by nearly three times last year to 11 months. This means that they would need as long as five years and eight months to save up a deposit for a residential property across the combined capitals, according to Domain’s annual First Home Buyer report.
The 33.1 per cent house price growth in Sydney in 2021 means first-time buyers are required to save for an extra 18 months, more than three times longer than the additional time anticipated in the previous year. Meanwhile, in the capital city of Canberra, as well as Adelaide and Hobart the additional time needed more than doubled, while in Melbourne it grew by six-fold. Accordingly, aspiring homebuyers will need eight years and one month to save the 20 per cent deposit, while in Canberra, its seven years and one month. The time it would take to put together the deposit to buy a residential property in Hobart, Adelaide and Melbourne is now five years and 10 months, four years and seven months and six years and six months, respectively.
“In a climate where incremental wage growth and rising mortgage repayments and rental prices are paired with escalating property prices, the prospect of saving the lump sum deposit is becoming more challenging,” Nicola Powell, chief of research and economics at Domain, said. “We’ve got tight vacancy rates and with the international borders reopening, we’re likely to see rents continuing to rise, which makes it tough for renters to put spare cash aside for that deposit.”
