Where are the top first home buyer suburbs?

New NAB data has revealed the top first home buyer hotspots based on lending data
Maroubra, in Sydney's eastern suburbs, recorded a 269% increase in first home buyer lending activity
Surprisingly, Canberra's 2602 postcode recorded the greatest growth nationally

New lending data has revealed that Western Sydney is leading the way for first home buyer hotspots as the property market cools amid higher interest rates.

With fewer sales throughout 2022 compared to 2021, the NAB data has shown a number of metropolitan and regional areas have recorded strong growth in home buyer activity during the June quarter.

In Sydney, the beachside suburb of Maroubra was the most popular with first home buyers, recording a 269% increase along with the postcode of Granville, on the outskirts of Parramatta.

In Melbourne, south-eastern suburbs continue to provide great value for first home buyers, with Dandenong (+80%) witnessing the most attention.

In Brisbane, Fortitude Valley first home buyer lending activity grew by 78% between April and June.

However, the nation’s capital was home to the area that recorded the greatest growth in first home buyer activity, The postcode of 2602, which includes Watson and Ainslie, increased by 360% in the June quarter.

Andy Kerr, NAB Executive Home Ownership, said hybrid working continues to give Australians the option to buy into areas they previously may have not considered.

“Flexible working is one of the biggest trends over the last decade when it comes to changing the game for property sales,” Mr Kerr said.

“The option to work from home is giving first home buyers more choice when it comes to location. All of a sudden, a slightly longer commute when made a few times a week becomes a serious consideration.

Andy Kerr, NAB

“The outer metro suburbs like Dandenong and Frankston in Victoria and Granville in Western Sydney continue to perform well.

Mr Kerr noted that the idea of tree-change remains popular with first home buyers, given that Sunbury in Victoria and Dapto in NSW becoming hotspots again.

“Suburbs like Richmond in inner-city Melbourne, Maroubra in Sydney or Fortitude Valley in Brisbane show that the balance of work and lifestyle continues to trend, particularly with apartment living,” he added.

“With a combination of house prices declining and the recent release of the First Home Guarantee Scheme, there is renewed optimism for first home buyers.

First home buyer hotspots

New South Wales

Greater Sydney

2035 – includes Maroubra (+269%)

2142 – includes Granville (+264%)

2767 – includes Bungarribee (+137%)

2765 – includes Melonba (+124%)

2763 – includes Quakers Hill (+56%)

2113 – includes North Ryde (+47%)

2145 – includes Wentworthville (+34%)

Regional

2530 – includes Dapto (+79%)

2800 – includes Orange (+40%)

“Western Sydney is a hot pick for first home buyers. Suburbs in the west are providing great value, with the city and local businesses going from strength to strength,” added Mr Kerr.

“Access to Parramatta and Blacktown with so many amenities and transport options means first home buyers continue to flock to western Sydney for a bargain.”

Victoria

Melbourne

3175 – includes Dandenong (+80%)

3121 – includes Richmond (+66%)

3802 – includes Endeavour Hills (+45%)

3978 – includes Clyde North (+16%)

3199 – includes Frankston (+12%)

Regional

3216 – includes Belmont (+69%)

3429 – includes Sunbury (+36%)

“Last year we noticed south-east Melbourne proving to be popular for first home buyers and 2022 has continued that trend,” said Mr Kerr

“With proximity to both the Mornington Peninsula and Gippsland, suburbs like Dandenong provide value whilst also being surrounded by some of Victoria’s most desirable getaway regions.

“Closer to the city, Richmond is always a top pick for first time buyers and the growth of apartments in the suburb is revitalising the idea of inner-city living and working.”

Queensland

Brisbane, Gold Coast and Sunshine Coast

4006 – includes Fortitude Valley (+78%)

4207 – includes Beenleigh (+34%)

4509 – includes North Lakes (+23%)

4503 – includes Kallangur (+18%)

“With cafés, pubs or trendy shopping on your doorstep, there’s no surprise that Brisbane’s Fortitude Valley is a popular hotspot with first home buyers this year,” Mr Kerr said.

“If you are looking for the inner-city experience – the Fortitude Valley still has it all.”

Regional

4670 – includes Bundaberg (+85%)

4740 – includes East Mackay (+42%)

4211 – includes Beechmont (+16%)

4350 – includes Toowoomba (+12%)

Western Australia

Perth

6018 – includes Karrinyup (+41%)

6107 – includes Queens Park (+37%)

6055 – includes Brabham (+31%)

6065 – includes Wanneroo (+19%)

Regional

6230 – includes Bunbury (+125%)

Mr Kerr said, “not only is Karrinyup a beautiful suburb 15 minutes north of the CBD, but it is also three minutes from arguably one of Perth’s most spectacular beaches.

“Proximity to the Karrinyup shopping precinct also provides access to fashion, dining and lifestyle options.”