Melbourne revealed as first home buyer hotspot, what you need to know

• Melbourne suburbs topped NAB's latest sales figures data.
• First home buyer activity undeterred by uncertain economic conditions.
• Many suburbs fell within government grant thresholds.

Melbourne leads the pack for attracting first home buyers, as top sales figures for Australian suburbs are revealed by the National Australia Bank.

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, said NAB Executive Home Ownership Andy Kerr.

NAB data shows buyers seemed undeterred by treacherous economic conditions, with top suburbs also tending to coincide with areas that fell below government grant thresholds.

First home buyers bank on value

“Value and location remain the two most important factors for first home buyers when looking to purchase their first property,” said NAB Executive Home Ownership Andy Kerr.

The data found Melbourne’s booming western and northern suburbs are the standout performers for first home buyers.

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.

Outer Growth hotspots

Kerr said the national data revealed young families are opting for outer suburbs, “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” she said.

2023 first home buyer hotspots

Based on NAB’s data for top sales for first home buyers by postcode from June to November 2022.

Victoria

1. 3029 – Hoppers Crossing, Tarneit, Truganina
2. 3063 – Craigieburn, Donnybrook, Kalkallo, Mickleham
3. 3978 – Cardinia, Clyde, Clyde North

New South Wales

1. 2762 – Schofields
2. 2765 – Berkshire Park, Box Hill, Maraylya, Marsden Park, Nelson, Oakville, Riverstone, Vineyard
3. 2170 – Casula, Chipping Norton, Hammondville, Liverpool, Lurnea, Moorebank, Mount Pritchard, Prestons, Warwick Farm

Queensland

1. 4350 – Toowoomba and surrounds
2. 4207 – Bennleigh, Yarrabilba
3. 4300 – Springfield Lakes, Goodna

Western Australia

1. 6112 – Armadale, Harrisdale
2. 6061 – Balga, Nollamara
3. 6164 – Success, Cockburn Central

South Australia

1. 5162 – Morphett Vale, Woodcroft
2. 5158 – Hallet Cove, O’Halloran Hill
3. 5251 – Mount Barker

Tasmania

1. 7320 – Burnie, Acton, Camdale
2. 7011 – Berriedale, Chigwell
3. 7310 – Devonport, East Deconport

Australian Capital Territory

1. 2602 – Dickson, Watson
2. 2913 – Casey, Franklin
3. 2617 – Bruce, Lawson

Northern Territory

1. 0810 – Nightcliff, Casuarina
2. 0870 – Alice Springs, Gillen
3. 0832 – Rosebery, Bakewell

First home buyer hotspot breakdown

Andy Kerr said, “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.”

The Property Tribune has also reported on countless industrial and other commercial property transactions in the suburb of Truganina, and its surrounds, in recent months and years. We believe these commercial transactions may also be a factor in residential sales figures, given commercial hubs typically translate to being hubs of employment.

In New South Wales, Sydney’s north-west has been attracting significant attention too, everywhere from the Hills to Liverpool has been on the list. NAB data found thatb the suburb of Schofields recorded a 63 per cent jump in quarter-on-quarter demand at the end of 2022, driven by the completion of several new housing developments and off-the-plan properties eligible for the state government assistance schemes.

Kerr said “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’s regional hubs have also proven the first home buyer’s choice said Kerr, “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.”

The majority of Western Australia’s suburbs of choice were located in the south east, said Kerr.

“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.”

Andy Kerr, NAB Executive Home Ownership

In South Australia, first home buyers chose Adelaide’s south, with some well-known names like Mount Barker making the list. Kerr said, “Adelaide’s southern suburbs continue to be in-demand locations for 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.”

Don’t be afraid to ask…

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 … 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” she said.