Yahoo Finance Property hotspots: Top 5 regions for NSW first-home buyers
Looking to get onto the property ladder? Here are five hotspots worth considering.
Whether you’re looking to live inland, go coastal or remain in the big smoke, these regions have been tipped as offering strong opportunities for first home buyers.
Property data expert Arjun Paliwal has identified five NSW regions he says offer strong long-term growth prospects, appealing lifestyles, solid economies and a pipeline of job opportunities.
“As a first-home buyer, you want to look for markets that are affordable, have housing-supply shortages - which will lead to capital growth - in addition to offering a great lifestyle and infrastructure pipeline, as this combination demonstrates growth potential,” Paliwal, who is the founder and head of research at InvestorKit, said.
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Paliwal said now may be a good opportunity for NSW first-home buyers to enter the market, following the introduction of the First Home Buyer Choice, which allows buyers to pay a smaller annual property tax rather than upfront stamp duty.
Tamworth
Tamworth offers an affordable and convenient lifestyle, Paliwal said, with a median house price of $469,000.
The city is located just a short flight away from both Sydney and Brisbane and has its own airport, as well as major amenities like a large healthcare facility and New England University. There are also about $3.8 billion worth of infrastructure projects in the pipeline.
Paliwal said Tamworth was a “standout area” because of its recent price growth of 18.3 per cent, as well as its undersupply of future builds and the low number of houses for sale and rent.
Central Coast
First-home buyers looking for a coastal lifestyle could consider the Central Coast, Paliwal said, which is just over an hour's drive from the Sydney CBD.
“While properties in the area are at a slightly higher price point, with median house prices over $900,000, the price caps of the new legislation mean a lot of suburbs in the Central Coast will get you a house with yard space, as opposed to a small apartment in Bondi,” Paliwal said.
Wagga Wagga
Wagga Wagga is the largest inland city in NSW and experienced high house price growth last year at 20.5 per cent. Despite this, property is still affordable at $500,000 for the average house.
“First-home buyers are already becoming active in the market due to very low rental supply levels. Wagga Wagga has one of the tightest rental markets in the country, sitting at below 0.5 per cent,” Paliwal said.
Wagga Wagga also had a pipeline of renewable-energy projects and defence projects, which would attract new residents, he said.
Coffs Harbour
Coffs Harbour performed strongly during the pandemic property boom and Paliwal expects it to continue to be a strong, growing region.
“With a median house price of $815,000, Coffs Harbour provides homeowners a well-priced lifestyle and, in recent years, the local foodie scene has also emerged,” Paliwal said.
The NSW government is also funding improvements to the marina in addition to other projects.
Western and south-west Sydney
Lastly, Western Sydney suburbs - including Penrith and Blacktown - as well as the south-west areas of Campbelltown, Liverpool, Bankstown and Badgerys Creek could provide more affordable housing options for buyers.
“First-home buyers will be pleased to hear there have been some price declines in the market in recent years, giving them an opportunity to buy at below-peak pricing, setting them up for long-term growth,” Paliwal said.
He said there was also infrastructure in the pipeline with the Western Sydney Airport set to open in 2026, as well as business park projects and transport infrastructure.
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