Where first homebuyers are benefiting the most from big changes to help crack the market

A big change aiming to help first home buyers crack the market has delivered almost $1 billion in savings so far.

First homebuyer activity in NSW has bounced back from historic lows seen during the property price boom. Picture: AAP

First home buyers in NSW have saved almost $1 billion in stamp duty, or an average of $15,000 each, since generous concessions were introduced 18 months ago.

New figures obtained by news.com.au show the suburbs where first-time property buyers have recorded the biggest savings by not having to pay the tax, or paying a discounted rate.

The Liberal-National Coalition government brought in a package in July 2017 that waived stamp duty for first home buyers on property up to $650,000, and offered a discount for properties prices between $650,000 and $800,000.

The amount saved is just about to hit $1 billion, which the government says is a sign the incentive is helping people crack the market.

It equates to an average of $15,000 saved per eligible first homebuyer since July 2017.

Campbelltown in Sydney’s west is the suburb that has recorded the most savings in stamp duty, with 1017 buyers sharing in $18.91 million in savings.

It was followed by Liverpool, in Sydney’s southwest, where 998 new buyers collectively saved $17.11 million, and Kingswood in Penrith, where 911 buyers shared in $13.37 million in savings.

The total amount first home buyers have saved in stamp duty concessions and discounts is just about to hit $1 billion in 18 months.

When the scheme was introduced, NSW Treasurer Dominic Perrottet said it was the most significant reform in a generation.

Until mid-2017, the stamp duty system had remained largely unchanged for more than 30 years.

“We haven’t seen any significant action on stamp duty brackets since 1986 when the median house price in Sydney was $100,000, now it has climbed to $1 million,” Mr Perrottet said.

“Whether you are a first homebuyer, a downsizer or upgrading to the family home you will ultimately benefit as a result of this reform.”

During the property boom in Sydney, first homebuyer levels were at historic lows, with many struggling to break into the market.

Mortgage insurance provider Genworth, the country’s largest, said its latest mortgage data had shown another lift in first-timer activity in NSW in the December quarter.

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First homebuyer activity in NSW has bounced back from historic lows seen during the property price boom. Picture: AAP

And last October, the number of first home buyers nationally hit its highest level since 2012.

“Along with the introduction of enhanced FHB incentives in NSW and Victoria, the strong pace of job creation is helping more and more Australians to become homeowners for the first time,” Master Builders Australia chief economist Shane Garrett told Your Mortgage magazine.

“(First-time buyers) are now a much bigger pillar of demand for new house and apartment building across Australia.

“As well as boosting building activity over the short term, having more homeowners will be favourable from the point of renovations demand over coming decades.”

The government says the billion-dollar stamp duty savings milestone is a sign that first homebuyers are benefiting. Picture: AAP

In addition to the stamp duty concessions in NSW, first home buyers building a new property valued up to $750,000 are entitled to a $10,000 grant, as are those buying a new home worth up to $600,000.

Riverstone, northwest of Sydney, is the NSW suburb that has recorded the highest value of grants issued, with 650 first-time buyers receiving a total of $6.86 million.

It was followed by the town of Camden, where 586 buyers collectively shared $6.38 million and the Kingswood in Penrith, where 529 buyers received a total of $5.67 million.