First Home Buyers Are Back Competing Hard In Melbourne And Sydney In The Cheapest End Of The Property Market Creating Price Growth Of 4.9 Per Cent

According to the latest Australian Bureau of Statistics data, first home buyers have increased their share of new loans to 18.1 per cent, the highest it’s been for six years. The steps brought in by the NSW Government 18 months ago to increase housing affordability, look to be starting to take effect.

With house prices in decline in some areas of Melbourne and Sydney, mainly the medium and higher priced suburbs, first home buyers are finding the lower priced suburbs are holding and even increasing their prices due to strong competition.

The first home buyer incentives of stamp duty savings and the federal governments’ Super Saver Scheme are making things more attractive and competitive for first home buyers. For example, there is no stamp duty paid by a first-time home buyer in Melbourne under $600,000 and under $650,000 in NSW, which is having a positive effect in these suburbs that are priced accordingly.

The flow on effect being the competition in these lower medium house price suburbs under the stamp duty thresholds has seen average price growth of 4.9 per cent in the past 12 months.

Top price gains in VIC suburbs under $600,000

Victoria Region

Melton South     34.2         West
Corio                    29.6         Geelong
Newcomb            29            Geelong
Norlane                28.9        Geelong
North Geelong   27.6         Geelong
Kurunjang           26.8        West
Melton West       26.8        West
Sunbury               26.5        West
Strathmore         26.3        West

Top price gains in NSW suburbs under $650,000

NSW Region

North Lambton                  22.8       Newcastle
Sussex Inlet                        22.5        Woollongong
Beresfield                            18.2        Newcastle
North Richmond*             17.6        West
Edgeworth                          16.3        Newcastle
Hawks Nest                        15.9        Newcastle
Summerland                      15.8        Central Coast
Lake Haven                        15.7        Central Coast
Swansea                              15.3        Newcastle

Source: Domain Aggregated median house price data
*Began the year under $600,000 or $650,000, respectively

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