Revealed: Bargain hotspots for first-home buyers

First-home buyers continued to look for bargains amid rising house prices, with many finding their gem in outer suburbs and metro markets.

According to NAB's latest data, lending to first-home buyers increased by 77% annually over the first months to August, with May as the peak month.

First-home buyer activity in metro areas during the period grew by 24% while regional activity increased by 16%.

NAB executive for homeownership Andy Kerr said over the past 18 months, the big shift in how Australian's work has diversified buyer preferences.

"The correlation between outer-metro suburbs and buying new builds in particular is certainly playing through in finding a bargain," he said.

"Inner-city apartments are again drawing more attention as buyers eye areas where price growth is more subdued.”

The postcodes below reported the strongest gains in first-home buyer demand over the four months to August:

First-home buyer Hotspots (May to August 2021)
New South Wales Greater Sydney Matraville (2036) – 134% Hornsby (2077) – 47% West Ryde (2114) –228% Seven Hills (2147) – 68% Baulkham Hills (2153) – 38% Merrylands (2160) – 80% Liverpool (2170) – 56% Bankstown (2200) – 50% Bateau Bay (2261) – 79% Campbelltown (2560) – 70%   Regional East Tamworth (2340) – 59% Dapto (2530) – 32%	Victoria Melbourne Southbank (3006) – 54% Altona Meadows (3028) – 128% Taylors Hill (3037) – 142% Preston (3072) – 252% Richmond (3121) – 39% South Yarra (3141) – 88% Narre Warren (3805) – 43% Cranbourne (3977) – 31% Wyndham Vale (3024) – 35%   Regional Melton (3337) – 63% Ballarat (3350) – 82% Sunbury (3429) – 34%	Queensland Brisbane, Gold Coast, Sunshine Coast Hamilton (4007) – 108% Acacia Ridge (4110) -115% Forest Lake (4078) – 37% Ormeau (4208) – 37% Southport (4215) – 31% Springfield Lakes (4300) – 51% Bray Park (4500) – 60%   Regional Beechmont (4211) – 39% East Mackay (4740) – 55%
Western Australia Perth Hillarys (6025) – 128% Joondalup (6027) – 31% Midland (6056) – 77% Girrawheen (6064) – 84% Mount Pleasant (6153) – 72% Ellenbrook (6069) – 48% Kardinya (6163) – 35%   Regional Kalgoorlie (6430) – 70%	South Australia Adelaide Pasadena (5042) – 82% Aberfoyle Park (5159) – 35%	ACT and Tasmania Canberra Holt (2615) – 24% Calwell (2905) – 245%   Hobart Kingston (7050) – 105%

Buyers flocking Greater Sydney

Several postcodes in Greater Sydney witnessed increased demand from first-home buyers before the lockdown, with Matraville striking the biggest gain of 134%.

"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," Mr Kerr said.

Sydney's western postcodes also attracted interest, including West Ryde, Liverpool, and Bankstown.

"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," Mr Kerr said.

West Melbourne gains more strength

Melbourne's western markets remained in-demand for many first-home buyers.

"Preston has jumped out as a popular hotspot with nearby Northcote and Thornbury offering the best of Melbourne’s inner-north lifestyle," Mr Kerr said.

“Cranbourne and Narre Warren in the south-east were again a standout with great access to public transport and the gateway to regions like the Mornington Peninsula and Gippsland."

Meanwhile, apartment living in Southbank and Richmond makes an appealing and affordable choice for many first-home buyers.

Positive outlook for Sydney and Melbourne

Mr Kerr said the recent lockdowns in New South Wales and Victoria managed to hold their grounds despite the recent lockdowns.

"We anticipate seasonality to return when we usually see a lot more stock come onto the marketplace during spring," he said.

"We are optimistic that as NSW and Victoria continue to open up in coming weeks as vaccination rates increase, listings particularly in Melbourne will surge towards the end of 2021."

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Photo by Max Böttinger on Unsplash.