First homebuyers increasingly looking to buy property in regional NSW
With first homebuyer activity driving the property market across NSW, new data from NAB has revealed these suburbs to be the most sought after:
Record low rates, a brief dip in property prices and stimulus measures have driven a surge in first homebuyer activity over the past three months.
New figures from NAB reveal regional areas and outer suburbs to be most in demand among first-time buyers as commute times become less of a factor in choosing a home location.
In the three months to October 31, lending to first homebuyers at NAB increased 31 per cent against the 12-month average in NSW. First homebuyers represented the only growth in the market during this time.
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Borrowing for buyers outside of Sydney was up 57 per cent — the largest increase of any area in Australia. In Sydney, the jump was 27 per cent.
NAB executive, home ownership, Andy Kerr said first homebuyer demand was the highest it has been in more than a decade.
“Demand has been supported by historically low interest rates and more government support, such as the First Home Loan Deposit Scheme and HomeBuilder,” he said.
Mr Kerr said a brief pullback in property prices as a result of COVID-19 also allowed many to enter the market.
“Many of our customers are telling us they are getting their dream home earlier than they thought possible, which is great news,” he said.
According to NAB, the most popular suburbs for first homebuyers in Sydney was Newington, which was up 70 per cent.
This was followed by Parramatta (up 66 per cent), Abbotsbury (up 157 per cent) and Campbelltown North (up 48 per cent). Camden, Oran Park, Llandilo, Cambridge Park and Penrith were also highly sought after.
Newington Village Real Estate consultant Chuck Lee said he had never seen so many first homebuyers in Newington before, and expects it to be the same in 2021.
“Word of mouth and visiting friends who have recently purchased here is bringing a lot first homebuyers to Newington,” he said.
“They’re finding it ticks all the boxes for them in terms of green space, amenities and proximity to the city and Parramatta.”
Outside of Sydney, the most popular region for first homebuyer mortgage applications was around Wyong on the Central Coast, which saw growth of 111 per cent, followed by Wallsend in Newcastle (up 65 per cent) and Port Macquarie with an increase of 143 per cent.
Brand Property principal Andre Kubecka said first homebuyers are attracted to the Wyong area because of price.
“The northern end remains very affordable compared to other parts of the Central Coast,” he said.
“You can still buy a three-bedroom house by the ocean for $600,000.”
Mr Kubecka said majority of first homebuyers looking to buy are from Sydney.
“They are being drawn to the area because of the lifestyle and affordability,” he said.
Mr Kerr said the trend toward buying in areas further from the city centre for lifestyle reasons would likely continue.
“Flexible working arrangements implemented due to COVID-19 are encouraging many Australians to consider a tree or sea change as easy access to the CBD moves down the priority list,” he said.
“Many are seeing the potential of more land and a more relaxed lifestyle with easy access to areas like the Blue Mountains proving very popular.”
The demand in regional areas has started to translate in higher prices with the November CoreLogic Home Value Index showing 6.8 per cent growth in regional verses capital city growth of 2.9 per cent in year-to-date.
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Originally published as First homebuyers increasingly looking to buy property in regional NSW