First home buyers are opting for metro areas.
  • NSW/ACT is the most popular among first home buyers
  • Despite lockdowns, buyers are looking to metro areas
  • The end could be in sight for the tree-change trend

First home buyers across Australia are setting their sights on their city’s outer suburbs, according to data released by NAB from the four months to August.

During these months NSW/ACT proved to be the most popular with the region experiencing the greatest growth in first home buyer activity.

NAB Executive Home Ownership, Andy Kerr said such buyers still found bargains while affordability and lockdowns affected the market.

“Greater Sydney continued its momentum in May and June before the lockdown started to have an impact on first home buyer activity along with rising house prices,”

Andy Kerr, NAB Executive Home Ownership

“We recognise rising prices are creating an increasing challenge, particularly for first home buyers as supply remains below average,” Mr Kerr said.

In 2020 the tree-change trend drew buyers to the regions. In NSW and the ACT, first home buyer activity over the last year has increased 103% in regional areas. Over the same time, metro areas increased 97%.

While the trend still persists, more recent data shows metro areas are now attracting more attention from first home buyers.

Comparing the activity from earlier in the year (Jan-Apr) with the latest data (May-Aug), the regional areas have experienced a 23% spike while the metro areas enjoyed a 30% rise.

“We still saw strong sales across July and August, with activity up 24% overall compared to the first four months of the year,” said Mr Kerr.

“There was huge growth in first home buyers just south of Sydney near Matraville and Eastgardens, again showing great demand in surrounding suburbs with nearby Maroubra a popular spot at the start of 2021.

“The west of Sydney continued to attract interest with West Ryde, Liverpool and Bankstown showing strong growth.

“The Central Coast stood out as an area of interest for first home buyers, offering an attractive lifestyle in the region. Dapto again proved to be a popular location for first home buyers just two hours south of Sydney.”

Sydney’s top 10 first home buyer hotspots in 2021

Area Activity Growth Postcode
1 West Ryde 228% 2114
2 Matraville 134% 2036
3 Merrylands 80% 2160
4 Bateau Bay 79% 2261
5 Campbelltown 70% 2560
6 Seven Hills 68% 2147
7 Liverpool 56% 2170
8 Bankstown 50% 2200
9 Hornsby 47% 2077
10 Baulkham Hills 38% 2153

Don’t forget the regions…

East Tamworth (2340) recorded the highest demand across the regions, with a 59% spike in first home buyer demand, followed by 32% for Dapto (2530).

East Tamworth is located five hours north of Sydney. Image – Canva

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