New NAB data reveals Melbourne’s booming western and northern suburbs remain the top Australian locations for first home buyers heading into 2023, but a suburb in Sydney’s north-west is rapidly closing the gap.
Despite the rising cost-of-living and an overall softening in the market, first home buyer activity remained steady in the second half of 2022, demonstrating first home buyers are taking advantage of easing house prices and government support schemes.
In Victoria, around one in 10 first home buyers are choosing to buy in areas around Hoppers Crossing in Melbourne’s west or Craigieburn in the city’s north. Melbourne’s growth areas have been further strengthened by billions of dollars in recently completed road projects and ongoing transport upgrades.
Sydney’s north-west growth suburb of Schofields tops the list of first home buyer hotspots in NSW, recording a 63% jump in quarter-on-quarter demand at the end of last year, driven by the completion of several new housing developments and off-the-plan properties eligible for state government assistance schemes.
Further north, Queensland’s top first home buyer suburbs were in the Garden City of Toowoomba. The regional centre is experiencing an infrastructure boom and first home buyers have been targeting the suburbs of Darling Heights and Drayton. In fact, three of the top five locations for first home buyers in Queensland were in regional cities outside of Greater Brisbane: Toowoomba, Mackay and Bundaberg.
NAB Executive Home Ownership Andy Kerr said first home buyers weren’t being deterred from entering the property market and were looking for opportunities amid the changing market conditions.
“Value and location remain the two most important factors for first home buyers when looking to purchase their first property,” Mr Kerr said.
“Despite the overall market softening, first home buyers are bucking the trend with sales staying stable nationally and growing in some of the hottest suburbs such as Schofields in NSW.”
“Outer metro growth areas like Tarneit in Melbourne, Hallett Cove, right near Adelaide’s southern beaches and suburbs south-east of Perth have great amenities, particularly for young families.
“Many of these areas are also attractive areas for investors and have high growth over the past five years as well as good rental yields.
“The popularity of these areas for first home buyers remained strong throughout the second half of 2022 and we expect to see steady demand early this year, as first home buyers look to areas representing the best value.”
Mr Kerr said buying a first home can be a daunting experience for many and encouraged anyone needing support through the process to contact their bank.
“We want to make it easy for first home buyers and with our new platform we’ve seen some home loans unconditionally approved in 15 minutes, which takes a lot of the stress out of the process.
“We also know there are some people who are feeling the pressure of a rising cost of living. For anyone who is concerned, please get in touch with your bank – the earlier the better.”
Top sales for first home buyers by postcode over the past 6 months (based on NAB data from June-November 2022):
Quotes attributed to NAB Executive Home Ownership Andy Kerr.
Victoria
- 3029 – Hoppers Crossing, Tarneit, Truganina
- 3064 – Craigieburn, Donnybrook, Kalkallo, Mickleham, Roxburgh Park
- 3978 – Cardinia, Clyde, Clyde North
“First home buyers in Victoria continue to be attracted to growth areas to the north, west and south-east of Melbourne, with good amenities, growing transport links, new schools and parks and a more relaxed, suburban lifestyle. Melbourne’s population is tipped to outpace Sydney’s by 2031 and these areas along key transport corridors will be where we continue to see that growth.”
New South Wales
- 2762 – Schofields
- 2765 – Berkshire Park, Box Hill, Maraylya, Marsden Park, Nelson, Oakville, Riverstone, Vineyard
- 2170 – Casula, Chipping Norton, Hammondville, Liverpool, Lurnea, Moorebank, Mount Pritchard, Prestons, Warwick Farm
“Schofields and Liverpool are some of the most in-demand suburbs for first home buyers in NSW, with new housing developments here falling within the price thresholds for a number of state government assistance schemes, and they have growing public transport options, retail and education precincts and parks in a suburban environment.”
Queensland
- 4350 – Toowoomba and surrounds
- 4207 – Beenleigh, Yarrabilba
- 4300 – Springfield Lakes, Goodna
“Toowoomba has been going from strength-to-strength in past years, attracting families with its quick commute to Brisbane, schools, laidback lifestyle and spacious land sizes. With billions of dollars of investment coming down the pipeline on the Inland Rail Link and a new Toowoomba Hospital, the Garden City is shaping up as an exciting place to buy and live.”
Western Australia
- 6112 – Armadale, Harrisdale
- 6061 – Balga, Nollamara
- 6164 – Success, Cockburn Central
“Perth’s southeast is growing rapidly, with good access to transport corridors and employment, as well as affordable and sustainable housing. Recently opened schools and access to parks and bushland give first home buyers in Harrisdale access to the suburban lifestyle with the chance to escape the hustle and bustle.”
South Australia
- 5162 – Morphett Vale, Woodcroft
- 5158 – Hallett Cove, O’Halloran Hill
- 5251 – Mount Barker
“Adelaide’s southern suburbs continue to be in-demand locations for South Australian first home buyers. Transport upgrades make Morphett Vale, Woodcroft and Hallett Cove even more attractive places to live and commute into the CBD. Mt Barker is a gem in the Adelaide Hills, providing easy access to growing amenities and fresh air.”
Tasmania
- 7320 – Burnie, Acton, Camdale
- 7011 – Berriedale, Chigwell
- 7310 – Devonport, East Devonport
Australian Capital Territory
- 2602 – Dickson, Watson
- 2913 – Casey, Franklin
- 2617 – Bruce, Lawson
Northern Territory
- 0810 – Nightcliff, Casuarina
- 0870 – Alice Springs, Gillen
- 0832 – Rosebery, Bakewell
