Hotspot suburbs in Victoria, NSW, SA, WA and Qld for first home buyers

House prices are falling as interest rates bite but there are still dozens of suburbs across Australia where buyers are scrambling to enter the market.

Falling house prices are causing a frenzy in some parts of Australia with new data revealing the suburb hot spots for first home buyers.

Melbourne’s booming western and northern suburbs remain the top Australian locations for first home buyers heading into this year, but a suburb in Sydney’s northwest is rapidly closing the gap, according to NAB data.

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.

Meanwhile, Sydney’s northwest growth suburb of Schofields tops the list of first homebuyer hot spots in NSW, recording a 63 per cent jump in quarter-on-quarter demand at the end of last year.

This has been driven by the completion of several new housing developments and off-the-plan properties eligible for state government assistance schemes, NAB analysis found.

Melbourne is most popular for first home buyers. Picture: David Crosling/NCA NewsWire

Further north, Queensland’s top first homebuyer suburbs were in Toowoomba, including Darling Heights and Drayton.

Three of the top five locations for first home buyers in Queensland were in regional cities outside of Brisbane such as Mackay and Bundaberg.

NAB’s executive of home ownership Andy Kerr said first home buyers weren’t being deterred from entering the property market and were looking for opportunities amid the changing market conditions.

“Value and location remain the two most important factors for first home buyers when looking to purchase their first property,” he said.

“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.

“Outer metro growth areas like Tarneit in Melbourne, Hallett Cove, right near Adelaide’s southern beaches and suburbs southeast 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.”

Andy Kerr, NAB home ownership executive. Picture: Supplied

The top sales in Victorian suburbs in the past six months include Hoppers Crossing, Tarneit, Truganina, Craigieburn, Donnybrook, Kalkallo, Mickleham, Roxburgh Park, alongside Cardinia, Clyde, Clyde North.

“First home buyers in Victoria continue to be attracted to growth areas to the north, west and southeast of Melbourne, with good amenities, growing transport links, new schools and parks and a more relaxed, suburban lifestyle,” Mr Kerr explained.

“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.”

New housing developments in some Sydney suburbs are attracting first home buyers. Picture: Gaye Gerard/News Corp/Daily Telegraph

Apart from Schofields in Sydney, other suburbs that have been popular with first home buyers include Berkshire Park, Box Hill, Maraylya, Marsden Park, Nelson, Oakville, Riverstone, Vineyard, as well as Casula, Chipping Norton, Hammondville and Liverpool.

Suburbs such as Lurnea, Moorebank, Mount Pritchard, Prestons and Warwick Farm are also topping the list.

“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,” Mr Kerr said.

Toowoomba is popular for first home buyers. Picture: Supplied

First home buyers are looking outside of Brisbane. Picture: Richard Walker

In Queensland, Toowoomba and its surrounds, Beenleigh, Yarrabilba, Springfield Lakes and Goodna have all attracted first home buyers.

“Toowoomba has been going from strength-to-strength in past years, attracting families with its quick commute to Brisbane, schools, laid-back lifestyle and spacious land sizes,” he added. “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.”

Out in Western Australia, suburbs such as Armadale, Harrisdale, Balga, Nollamara, Success, Cockburn Central have been favourites for first home buyers.

“Perth’s southeast is growing rapidly, with good access to transport corridors and employment, as well as affordable and sustainable housing,” he said.

“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.”

An easy commute to the city is one of the things first home buyers are looking for in Adelaide. Picture: Kelly Barnes/NCA NewsWire

For first home buyers in South Australia, suburbs including Morphett Vale, Woodcroft, Hallett Cove, O’Halloran Hill and Mount Barker have all been popular among first home buyers.

“Transport upgrades make Morphett Vale, Woodcroft and Hallett Cove even more attractive places to live and commute into the CBD,” he said.

“Mt Barker is a gem in the Adelaide Hills, providing easy access to growing amenities and fresh air.”