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‘Dream home’: Major bank reveals first homebuyer hotspots

Anastasia Santoreneos
·4-min read
Melbourne, Australia - November 28, 2015: Visitors reading a row of estate agent signs outside a newly-renovated apartment building at 5 Commercial Rd, South Yarra. Formerly a derelict hotel, the site was the focus of Series 11 of popular Channel Nine TV series The Block. a reality renovation contest.
‘Dream home’: Major bank reveals first homebuyer hotspots. Source: Getty

With record low interest rates and a brief dip in property prices, demand for property from first home buyers has surged, according to National Australia Bank data.

In the three months to 31 October, lending to first home buyers at the major bank increased by 21 per cent compared with the same period last year. In fact, first home buyers represented the only growth in the market during those three months.

“First home buyers are back in the market at levels we haven’t seen for a decade,” NAB executive, home ownership, Andy Kerr said.

Kerr said demand was supported by historically low interest rates, Government support measures and a brief pullback in prices.

“As a result, many of our customers are telling us they are getting their dream home earlier than they thought possible, which is great news.”

While first home buyer demand was seen across the country, the strongest growth was in Queensland, with lending up 39 per cent, followed by Western Australia at 37 per cent.

With remote work becoming a growing trend, regional areas in NSW also saw a surge in first home buyer activity.

“Many are seeing the potential of more land and a more relaxed lifestyle with easy access to areas like the Blue Mountains in NSW and Great Ocean Road in Victoria proving very popular.”

Where are Aussies buying their first home?

New South Wales

Greater Sydney

  • 2127 – including Newington +70%

  • 2150 – including Parramatta +66%

  • 2174 – including Abbotsbury +157%

  • 2560 – including Campbelltown North +48%

  • 2570 – including Camden & Oran Park +38%

  • 2747 – including Llandilo & Cambridge Park +54%

  • 2750 – including Penrith +68%

Outside Sydney

  • 2259 – including Wyong (Central Coast) +111%

  • 2287 – including Wallsend (Newcastle) +65%

  • 2444 – including Port Macquarie +143%

  • 2478 – including Ballina +148%

“For first-time buyers the leading postcodes primarily fall into two regions: One is west of Sydney’s CBD, from Parramatta through to the foot of the Blue Mountains, and the other is Camden and Campbelltown and the surrounding suburbs in Sydney’s south-west,” Kerr said.

Victoria

West of Melbourne CBD

  • 3217 – including Armstrong Creek +97%

  • 3216 – including Waurn Ponds & Belmont +56%

  • 3338 – including Melton South +38%

  • 3029 – including Tarneit & Hoppers Crossing +22% (postcode with most lending to FHB in the state)

East of Melbourne CBD

  • 3196 – including Chelsea and Edithvale +60%

  • 3175 – including Dandenong +50%

  • 3174 – including Noble Park +32%

  • 3978 – including Clyde +32%

  • 3810 – including Pakenham +27%

  • 3977 – including Cranbourne +23%

Kerr said a common theme to many of the Melbourne locations is they are at, or near, the end of train lines.

“They are also typically a short drive to some of Victoria’s best beaches, be it along the famed Great Ocean Road or the Mornington Peninsula,” he said.

Queensland

South-east Queensland

  • 4118 – including Browns Plains (Logan City) +106%

  • 4209 – including Coomera (Gold Coast) +94%

  • 4300 – Greater Springfield (Ipswich) +67% (most lending)

  • 4305 – Central Ipswich +93%

  • 4306 – including Karrabin (Ipswich) +58%

  • 4509 – including North Lakes (Brisbane) +99%

North and west Queensland

  • 4817 – including Hervey Range and Bohle Plains (Townsville) +64%

  • 4825 – including Mount Isa +115%

Cairns and areas north of the Sunshine Coast just missed the list, but are also in demand, Kerr said.

Western Australia

Perth

  • 6061 – including Nollamara & Mirrabooka +107%

  • 6062 – including Morley +78%

  • 6107 – including Cannington +63%

  • 6110 – including Huntingdale +91%

  • 6112 – including Armadale +63% (most lending)

Regional WA

  • 6430 – Kalgoorlie +62%

  • 6530 – Geraldton +117%

“In Perth, you don’t need to travel far to find value given a less buoyant property market over recent years. As a result, the most popular suburbs aren’t as far from the CBD as in the eastern capitals,” Kerr said.

Outside the capital, areas like Kalgoorlie, which have seen a jobs boom due to gold, nickel and rare earth mining operations, are also drawing attraction from first home buyers.

South Australia

Adelaide

  • 5085 – including Clearview and Enfield +52%

  • 5086 – including Oakden and Hillcrest +51% (most lending)

  • 5108 – including Salisbury +68%

“There’s plenty of first home buyers looking north in Adelaide, with suburbs like Oakden, Clearview and Salisbury among the more popular,” Kerr said.

“Looking south and while Morphett Vale didn’t quite make our list, it remains in steady demand from first home buyers with its plentiful schools and parks, not to mention easy access to the McLaren Vale.”

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