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
