sydney-skyline-night-dusk-twilight-feature
Image: Canva.
  • Three units feature on the list, with the remainder houses
  • Includes one suburb that sits just minutes from the Sydney CBD
  • Median prices for these suburbs were typically between $600K and $800K

Over the past few weeks, The Property Tribune has been exploring the best suburbs for first home buyers.

Last week we explored the Top 10 Suburbs in Perth, the most affordable city in Australia, and prior to that, Melbourne.

Canstar’s The Australian First Home Buyer Report ranked the eight capital cities and six regional states and territories from most affordable to least affordable.

It came as no surprise Sydney came stone dead last, in overall rankings, see below, but what suburbs are still a good buy in the harbour city?

  1. Regional WA,
  2. Regional SA,
  3. Perth,
  4. Regional Queensland,
  5. Regional Tasmania,
  6. Regional Victoria,
  7. Regional NSW,
  8. Brisbane,
  9. Darwin,
  10. Adelaide,
  11. Hobart,
  12. Canberra,
  13. Melbourne,
  14. Sydney.

The Canstar report

Hotspotting property expert and co-producer of the Bright Starters Report, Terry Ryder, said, “The Report found a dual-income couple can save a 10 per cent deposit in under two and a half years in eight of the 14 market jurisdictions across Australia. This means if you’re smart about where you buy, you could hold the keys to your first home in less time than you think.”

“It’s not just about affordability for first home buyers – they also want desirability and the knowledge that their home will grow in value over time. This Report also highlights 107 suburbs around the country that offer the full package – affordable dwellings, amenities and lifestyle and prospects for growth.

Affordability rankings were determined by setting the price based on the lower quartile or 25th percentile sales price for houses in each location. These prices were sourced from Dashdot and are based on data published by CoreLogic in January 2022 (meaning December 2021 data).

Top 10 suburbs for first home buyers. Source: Canstar.
Canstar then whittles the numbers down using two metrics: time to save and repayments as a percentage of income. Both metrics had equal weighting.

The suburbs were also chosen from the 25th percentile for sales price and allowed for a variation of up to 10%. For a town or suburb to be eligible, the median price had to be lower than the aforementioned figure. For example, if the lower quartile sales price was $255,000 then the median price needed to be $280,500 or less for a location to
be included.

Canstar then applied the following five parameters:

  1. Sales volumes, data from domain.com.au,
  2. Quarterly price growth, data from CoreLogic and smartpropertyinvestment.com.au,
  3. Vacancy rates, data from SQM Research
  4. Infrastructure, data from multiple sources, and
  5. Proximity to work and amenities, data from multiple sources.

Liverpudlians delight

Well, maybe. It depends on if you want a unit. Three suburbs that made the list considered units as an option to buy, with the others including Sutherland, and Hillsdale; Hillsdale of course a slightly leafier, and convenient option if you’re looking for a short commute to the coat hangar.

Suburb Median price 1-year growth Median rent
Bradbury $650,000 12% $520
Doonside $740,000 15% $400
Hillsdale (U) $680,000 14% $400
Kingswood $770,000 20% $400
Leumeah $685,000 11% $395
Liverpool (U) $470,000 5% $350
Lurnea $800,000 16% $450
Mt Druitt $770,000 15% $405
St Marys $760,000 16% $400
Sutherland (U) $685,000 6% $460

How much are you paying?

Depending on whether you’re putting down a 10% or a 20% deposit, the time to save can vary.

Best Sydney suburbs for first home buyers on a 20% deposit

Suburb Initial outlay Time to save (single income) Time to save (dual income) Monthly repayments
Bradbury $130,295 12 yrs 7 mths 5 yrs 10 mths $2,226
Doonside $167,078 16 yrs 3 mths 7 yrs 6 mths $2,534
Hillsdale (U) $142,556 13 yrs 10 mths 6 yrs 5 mths $2,329
Kingswood $179,339 17 yrs 6 mths 8 yrs 1 mth $2,637
Leumeah $144,600 14 yrs 6 yrs 6 mths $2,346
Liverpool (U) $94,295 8 yrs 9 mths 4 yrs 2 mths $1,610
Lurnea $191,600 18 yrs 8 mths 8 yrs 7 mths $2,740
Mt Druitt $179,339 17 yrs 6 mths 8 yrs 1 mth $2,637
St Marys $175,252 17 yrs 1 mth 7 yrs 10 mths $2,603
Sutherland (U) $144,600 14 yrs 6 yrs 6 mths $2,346

Best Sydney suburbs for first home buyers on a 10% deposit

Suburb Initial outlay Time to save (single income) Time to save (dual income) Monthly repayments
Bradbury $65,295 5 yrs 10 mths 2 yrs 10 mths $2,645
Doonside $93,078 8 yrs 3 mths 4 yrs $3,011
Hillsdale (U) $74,556 6 yrs 8 mths 3 yrs 3 mths $2,767
Kingswood $102,339 9 yrs 1 mth 4 yrs 5 mths $3,133
Leumeah $76,100 6 yrs 10 mths 3 yrs 4 mths $2,787
Liverpool (U) $47,295 4 yrs 2 mths 2 yrs 1 mth $1,903
Lurnea $111,600 9 yrs 10 mths 4 yrs 10 mths $3,255
Mt Druitt $102,339 9 yrs 1 mth 4 yrs 5 mths $3,133
St Marys $99,252 8 yrs 10 mths 4 yrs 4 mths $3,093
Sutherland (U) $76,100 6 yrs 10 mths 3 yrs 4 mths $2,787

~~

Top 10 suburbs for first home buyers in Sydney

  1. Bradbury
  2. Doonside
  3. Hillsdale (Units)
  4. Kingswood
  5. Leumeah
  6. Liverpool (Units)
  7. Lurnea
  8. Mt Druitt
  9. St Marys
  10. Sutherland (U)

 

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