The most popular suburbs for first-home buyers revealed: NAB data

The most popular suburbs for first-home buyers have been revealed, with regional areas and outer suburbs in hot demand from buyers now able to work from home.

Sydney’s west and the NSW Central Coast recorded jumps in demand, alongside Geelong’s Armstrong Creek in Victoria and Logan south of Brisbane, on lending data from NAB.

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

“Demand has been supported by historically low interest rates and more government support, such as the First Home Loan Deposit Scheme and HomeBuilder. A brief pullback in property prices also helped first-home buyers as the uncertainty of COVID-19 put many plans on ice, with investor demand slowing noticeably.”

Lending to first-home buyers at NAB increased by 21 per cent in the three months to October 31, compared to the 12-month average.

It comes as official figures show overall loan growth to first-home buyers across banks has spiked to levels not seen since the GFC, with investors sitting on the sidelines amid an uncertain rental market.

In NSW, first-home buyer hotspots are being led by postcodes that fall primarily 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.

Lending jumped 66 per cent in Parramatta and 68 per cent in Penrith, and by as much as 157 per cent in Abbotsbury.

Campbelltown North rose 48 per cent while Camden and Oran Park jumped 38 per cent.

Wyong on the Central Coast jumped 111 per cent, while further north, Ballina rose 148 per cent and Port Macquarie rose 143 per cent.

“There are positive stories across regional NSW, particularly coastal towns, with the Central Coast one of the most significant growth areas for first-home buyers in the country,” Mr Kerr said. “The access to quality beaches and a more relaxed lifestyle are also obvious drawcards further north in and around Port Macquarie and Ballina.”

Alfredo de Assis of Richardson & Wrench Parramatta said he had never had so many first-home buyers actively buying.

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“I would say the majority of my buyers are now first-home owners. The incentives have triggered something, certainly, because the amount of people who are looking as first-home buyers is higher than I have ever seen it,” he said.

Mr de Assis said almost all of the first-home buyers shopping in and around Parramatta were looking under the stamp duty threshold of $650,000 and were more determined to buy now given the exemptions and incentives on offer: “They are thinking ‘I work from home, so now I can buy out here and live really well.”

He described a one-bedroom unit for sale in the five-star Meriton Altitude resort at Church Street, Parramatta, as one of the best buys in Sydney.

“This is incredible buying for first-home buyers, perhaps a professional person, somebody who works from home because it’s right there with restaurants, cafes, transport, the ferry and the Westfield,” he said.

In Victoria, hotspots were clustered west of Melbourne and in Geelong, or in the city’s outer southeast.

Geelong’s Armstrong Creek jumped 97 per cent, and Waurn Ponds rose 56 per cent, while Melton South on Melbourne’s western fringe rose 38 per cent.

In the south-east, Chelsea and Edithvale were up 60 per cent, Dandenong was up 50 per cent, and Clyde rose 32 per cent.

Buxton Highton’s Roger Pedretti has seen a big influx of first-home buyers chasing more affordable properties and new builds, which qualify for government incentives.

“Armstrong Creek is typically a new area, so a lot of first-home buyers are qualifying for the grant there,” he said.

“Either a new build or they try and take advantage of no stamp duty.”

He has seen an influx of buyers from Melbourne who have been looking for a lifestyle change after months of lockdown.

“The lifestyle is quite appealing in Armstrong Creek because you’ve got newish homes, a lot of services in there, schools, a shopping centre,” he said.

“Access to good beaches – Barwon Heads is only 10 minutes down the road, Torquay is 15 minutes … [but you’re still located] 10, 15 minutes from the CBD.”

South-east Queensland buyers were considering plenty of options within an hour of Brisbane’s CBD, Mr Kerr said.

Browns Plains in Logan, south of Brisbane, recorded a 106 per cent jump in lending, while rises of more than 90 per cent were recorded for Coomera on the Gold Coast, central Ipswich and North Lakes in Brisbane.

In the north-west Queensland mining town of Mount Isa, there’s been a 115 per cent rise in lending to first-home buyers.

“In Queensland, the first-home buyer hotspots are more widespread than in any other state,” Mr Kerr said.

“Cairns and areas just north of the Sunshine Coast just missed out but are also in demand, and are expected to remain that way as the sea change draws more converts.”

In Western Australia, the most popular suburbs were closer to the CBD than in the eastern capitals.

Demand jumped in Nollamara and Mirrabooka (107 per cent), Huntingdale (91 per cent), Morley (78 per cent), Armadale (63 per cent) and Cannington (63 per cent).

In South Australia, first-home buyers were looking to Adelaide’s northern suburbs.

Clearview and Enfield rose 52 per cent, while Oakden and Hillcrest added 51 per cent.

Mr Kerr expects the tree-change trend to continue.

“Flexible working arrangements implemented due to COVID-19 are encouraging many Australians to consider a tree or sea change as easy access to the CBD moves down the priority list,” Mr Kerr said.

“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 the Great Ocean Road in Victoria proving very popular.”