NAB reveals Hobart’s first-time buyer hotspots

Which Hobart suburbs ranked highest with first-time buyers? It may not be the areas that immediately come to mind.

First-home buyer loans at NAB have skyrocketed in the 7008 postcode. Picture: Supplied

NEW first-home buyer figures from a big four bank have revealed a remarkable trend in this Hobart city fringe neighbourhood.

The 7008 postcode, Lenah Valley and New Town, made the National Australia Bank’s hotspot list with a 259 per cent increase when the bank compared new FHB home loans in the first four months of 2021 to the final four months of last year.

Compared year-on-year, NAB’s Tasmanian FHB lending jumped 71 per cent in the first four months of 2021. This was higher than the national figure, 67 per cent.

Tasmania also saw a sharper rise in activity than was recorded nationally when comparing loan growth in January to April 2021 with September to December of 2020. On the Apple Isle there was a 13 per cent uptick compared to 9 per cent Australia-wide.

The time is right to get cracking on an application for the next round of the First Home Deposit Scheme. Picture: Supplied

Real Estate Institute of Tasmania president Mandy Welling said it was wonderful to see such a powerful statistic for Tassie’s first-home buyer market.

“This section of the market is hotly contested with a short supply and many, many buyers,” she said.

“To see FHB taking advantage of the schemes that are on offer to them to help secure their asset, it really is uplifting.”

Mrs Welling said the concern, of course, was supply.

She said while government incentives were of great assistance, they would be limited by low stock levels in the marketplace.

“We have no doubt that many have missed out — but have been eligible — due to the short supply of homes in the targeted price range,” she said.

“This will be an ongoing challenge with a short supply of land, restrictions within councils for the purpose of development and an upward moving market.”

REIT president Mandy Welling was happy to hear of FHB getting into the market. Picture: Chris Kidd

Per realestate.com.au, Lenah Valley’s median house price is $675,000, which has grown by 11.4 per cent over the past 12 months. Units have grown by 10.3 per cent to a median of $441,250.

In New Town, houses were even more expensive with a median at $740,000 and 8.1 per cent annual growth. The median unit price is $430,250 with 7.6 per cent growth.

Across the country, NAB’s research revealed lending to FHB had hit a record high.

NAB home ownership executive Andy Kerr described the level of FHB activity as “like nothing we’ve seen in a generation”.

“Record low interest rates and government incentives continue to support demand.

“Rising house prices are creating a challenge for some Australians as supply levels remain below average.”

The bank’s FHB loan data came as it began accepting applications for the next round of the First Home Deposit Scheme.