young first home buyers
Fortitude Valley recorded a remarkable +486% growth in first buyer activity. Source: Canva.
  • First Home Loan Deposit Scheme has caused record high lending to first home buyers
  • Rush to regional areas has slowed down while metro areas are on the rise
  • NAB has analysed the data to determine the first buyer hotspots

As a result of the Federal Government’s First Home Loan Deposit Scheme (FHLDS), lending to first home buyers hit a new record high in April according to NAB data.

The rush into regional areas has subsided recently, with first home buyer activity falling 4% over the previous four months. Meanwhile, metro areas rose 13% in the same period.

The figures show outer metro suburbs are the most in-demand, while inner-city departments previously not looked at are drawing more attention due to low price growth.

“The level of first homebuyer activity has been like nothing we’ve seen in a generation,” NAB Executive, Home Ownership, Andy Kerr said.

Here are the first home buyer hotspots according to NAB’s analysis (by postcode):

New South Wales (Greater Sydney)

  • 2138 – including Rhodes +291%
  • 2035 – including Maroubra +238%
  • 2010 – including Darlinghurst, Surry Hills +166%
  • 2763 – including Acacia Gardens +80%
  • 2150 – including Parramatta +87%
  • 2216 – including Rockdale +61%
  • 2066 – including Lane Cove +55%
  • 2229 – including Caringbah +45%

New South Wales (Regional)

  • 2530 – including Dapto +54%
  • 2444 – including Port Macquarie +30%
  • 2250 – including Gosford +17%

Victoria (Melbourne)

  • 3149 – including Mount Waverly +180%
  • 3121 – including Richmond +163%
  • 3136 – including Croydon +155%
  • 3806 – including Berwick +146%
  • 3750 – including Wollert +64%
  • 3150 – including Glen Waverley +59%
  • 3021 – including St Alban’s +51%
  • 3046 – including Glenroy +45%

Victoria (Regional)

  • 3630 – including Shepparton +129%
  • 3400 – including Horsham +123%
  • 3500 – including Mildura +73%
  • 3844 – including Traralgon +59%

Queensland (Brisbane, Gold Coast and Sunshine Coast)

  • 4006 – including Fortitude Valley +486%
  • 4170 – including Morningside, Cannon Hill +110%
  • 4068 – including Indooroopilly +102%
  • 4017 – including Bracken Ridge +90%
  • 4122 – including Mount Gravatt +87%
  • 4551 – including Caloundra +53%
  • 4218 – including Broadbeach +39%
  • 4053 – including Everton Park +36%

Queensland (Regional)

  • 4811 – including Stuart (Townsville) +221%
  • 4814 – including Aitkenvale (Townsville) +72%
  • 4670 – Bundaberg +72%
  • 4350 – Toowoomba +31%
  • 4211 – including Beechmont +23%

Western Australia (Perth)

  • 6055 – including Caversham, Guildford +73%
  • 6163 – including Kardinya +63%
  • 6164 – including Cockburn +54%
  • 6027 – including Joondalup +53%
  • 6112 – including Armadale +37%
  • 6018 – including Innaloo, Churchlands +27%
  • 6061 – including Mirrabooka +22%

Western Australia (Regional)

  • 6210 – Mandurah +110%
  • 6280 – Busselton +22%
  • 6530 – Geraldton +20%

South Australia (Adelaide)

  • 5070 – including Payneham +473%
  • 5000 – including CBD +82%
  • 5074 – including Campbelltown, Newton +42%

South Australia (Regional)

  • 5251 – including Mt Barker +76%

Australia Capital Territory

  • 2611 – including Molonglo +67%
  • 2913 – including Palmerston +34%
  • 2914 – including Amaroo +21%

Tasmania

  • 7008 – including Lenah Valley +259%

Unaffordability issues

Despite record first home buyer activity, Mr Kerr did acknowledge the increasing unaffordability problem for many Australians:

“Record low interest rates and government incentives continue to support demand and it’s been great to hear stories of some customers purchasing their first home earlier than expected.

“However, we also recognise rising house prices are creating a challenge for some Australians as supply levels remain below average.”

Respected housing economist, Saul Eslake has criticised the federal government on this front for pursuing policies that inflate the demand for housing without also stepping up to expand its supply:

“Media coverage is rightly sounding alarm at recently booming house prices that are locking more young people out of the market. But this is far from a short term or cyclical issue.

“It’s a structural problem that’s been building for decades. And it’s one that won’t be solved by policy initiatives that just tinker round the edges.

“It’s been more than amply demonstrated that what governments need to do is step back from policies which serve mainly, or only, to inflate the demand for housing, and step up to pursue policies which expand the supply of it.”

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