The suburbs where buyers can break into the property market fastest
It’s no secret that saving for a 20 per cent first-home deposit can often feel like walking towards a mirage in a desert as affordability almost becomes an illusion.
However, new data from the Domain First-Home Buyer Report reveals the areas where prospective buyers can shave years off the time spent saving for a deposit in each capital.
At the pointy end of the scale, it would take a first-home buyer couple almost 15 years to save for a 20 per cent deposit for an entry-priced house in Sydney’s eastern suburbs, with Manly taking the top spot with a savings timeline of 14 years.
Whereas, first-home buyers could fast track their entry into the market – and slash 12 years off this timeline – by considering a unit in Mackay in Queensland, where it would take just under two years to save for a 20 per cent deposit.
“Location is paramount in the property market, especially when purchasing your first home,” says Domain chief of research and economics Nicola Powell.
“Where you choose to buy can significantly affect how quickly you can save for a deposit, as affordability varies widely across different areas within a city and, therefore, impacts when buyers can make their first purchase.”
In Melbourne, the most expensive region to save for a first-home deposit for a house are suburbs within the ABS SA3 Boroondara region, including Kew, Hawthorn and Glen Iris, where it would take almost 11 years of adding to the deposit kitty.
Again, first-home buyers could reduce this amount by six years, by saving for a house deposit in suburbs within the ABS SA3 Tullamarine to Broadmeadows region, including Craigieburn, Greenvale, Roxburgh Park and Gladstone Park, where it takes just under five years to save for a house deposit.
Frankie Azzopardi of Ray White Glenroy services these suburbs where first-home buyers are flocking.
“We get heaps of first-home buyers here, some have family in the area, some are completely new to the area,” he says.
Azzopardi believes it’s “the value for money and what you’re getting” that offers first-home buyers a good opportunity, along with the “really good infrastructure” in Craigieburn and Roxburgh Park, each with their own train station.
Gladstone Park is another favourable suburb among first-home buyers as “it’s closer to the city” than its neighbouring suburbs with direct access to the Tullamarine freeway and direct route to the CBD.
In a hurry? Melbourne first-home buyers can enter the property market in as little as two years and nine months with an entry-priced unit in suburbs such as Essendon, Ascot Vale and Flemington.
In Perth it’s a similar story, where it would take two years and seven months to crack into a market by saving for a unit in suburbs located within the ABS SA3 Perth City region. These super central suburbs are often high on the first-home buyer wish list and include Subiaco and Kings Park.
However, according to Domain data, saving a deposit for an entry-priced home in suburbs such as Cottesloe and Claremont would take nine years and six months.
Brisbane hopefuls are looking at nine years of saving to crack into Brisbane’s most expensive region, including suburbs like Ashgrove, Paddington and Red Hill, with a Mackay unit taking under two years.
After Darwin, Hobart offers the shortest time to save for a 20 per cent deposit for an entry-priced house nationwide.
Some of Hobart’s most affordable suburbs for saving a 20 per cent house deposit include Glenorchy and Claremont with a timeline of just under 5 years.
Alison Rogers of LJ Hooker Pinnacle Property has seen the positive impact infrastructure has had in the area, especially when attracting first-home buyers.
“When Hobart was first built up, these suburbs were outer suburbs, whereas now they’re considered really close and accessible to the city … there is a bus interchange just on the fringe of Glenorchy and it does have easy access to the Brooker Highway, which is basically the main arterial route into the city, so you’re looking at a 10 to 15-minute commute max into the city,” she says.
Beyond the infrastructure and affordable house prices, the local attractions and lifestyle also appeal to first-home buyers in Glenorchy and Claremont.
“It’s outlook is really pleasant, from a lot of vantage points you can see the Derwent River,” says Rogers.
“The Museum of Old and New Art is also a stone’s throw from Claremont and visible from a lot of properties, there’s also Cadbury’s Chocolate Factory … there is a lot of infrastructure, a lot of development, a lot of vibrancy around the area, and it is very much on the radar of first-home buyers at the moment”.
Domain data reveals that the entry price for a house in Hobart is $580,000, and within this budget, Alison says first-home buyers have a plethora of choices.
“I’ve just got [a house] under contract for $550,000 with a water view, hillside view, you can see MONA [from the property], and it’s very well maintained that a first buyer is purchasing,” says Rogers.
“People can get – for around that early to mid fives mark – a three bedroom, one bathroom home, quite possibly with a carport or garage attached as well, on a relatively good size block that’s 600 or 700 metres square.”
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