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Postcodes proving to be hot property among first-home buyers



PropTech firm InfoTrack pinpoints which NSW suburbs attracted the most first-time purchasers in a year

New research into property purchaser behaviour has unveiled the top spots in NSW favoured by first-home buyers over the past 12 months. The analysis also highlights behaviour throughout the first quarter of 2021 during a post-pandemic surge in homebuyer activity.

InfoTrack has collated its latest conveyancing data insights for the year to April 2021 and can reveal that suburbs in Sydney’s outer ring attracted the greatest number of first-home buyers during what was an unprecedented year for the global economy and local property markets alike.

CEO of InfoTrack, John Ahern, said the research told a story of first-home buyer resilience.

“Its an interesting time and everybodys wondering in a market where prices are being pushed so high, what does that mean for first-home buyers?” he said.

“In March 2021 we saw a 25 per cent increase in first-home buyer activity in NSW. And a similar lift in November and December of 2020 last year. So it's a really positive sign,” Mr Ahern said. “What is promising is that first-home buyer activity is still 40 per cent more active than in April 2020,” he continued.

Although April had seen a slight decline in first-home buyer activity, Mr Ahern concluded that could simply be down to the timing of public holidays.

“April is a shorter month, and we did see a short decline of about 10 per cent. But there are still many very positive signs for first-home buyers in this market.

Top 10 first home buyer suburbs (Jan 1 to April 30, 2021)

Suburb                                                 12-month median house price             Distance from CBD

Marsden Park (2765)                                                    $829,000                                  53kms

Austral (2179)                                                              $715,000                                  50kms

Oran Park (2570)                                                          $742,000                                  60kms

Schofields (2762)                                                         $855,000                                  53kms

Campbelltown (2560)                                                   $623,000                                  57kms

Liverpool (2170)                                                          $741,000                                  39kms

Wagga Wagga (2650)                                                   $443,250                                  459kms

Greystanes                                                                  $870,000                                  28kms

Hamlyn Terrace (2259)                                                $650,000                                  112kms

Gosford (2250)                                                             $557,500                                  84kms

*Price data source: realestate.com.au 

 

Where first-home buyers are headed

According to InfoTrack’s exclusive data, first-time buyers largely sought out neighbourhoods that offered more affordability compared with Sydney’s inner and middle ring suburbs. The most popular postcodes were also areas that allowed buyers to build brand new homes, a path to homeownership that was spurred on by the Federal Government’s HomeBuilder grant. The COVID-inspired scheme, which launched in June 2020 and finished in April 2021, offered all homebuyers $25,000 (then $15,000) to build or renovate a home.

Marsden Park, which sits 49kms north west of Sydney’s CBD was the most in-demand suburb for first-home buyers.

“The average sale price in Marsden Park is around $829,000. It has recreational parks, views of the Blue Mountains and access to a railway station, and that's a common thing first-home buyers look for; a great place to live and access to infrastructure,” Mr Ahern said.

Austral, a suburb located 50kms south west of the CBD and with a median house price of $715,000, was the second most sought after neighbourhood.

Austral is about $100,000 less than Marsden Park, but it has potential as the airport is going in next door and youre able to build a larger house. Whether youre buying or building a house in post-COVID times, people are looking for more space and they can get that in Austral,” he said.

 

The return of the first-home buyer

While the Federal Government’s HomeBuilder Scheme has now finished, a new program is underway for single parents buying their first home. Soon single parents may be able to purchase a new home with a deposit of only two per cent under a new federal scheme.

Tom Panos, NSW Auctioneer and partner of InfoTracks Securexchange – Australia's fast, secure property exchange website - said despite rising dwelling prices across the state, first-time purchasers are still out house hunting.

What Im seeing in relation to first-home buyer activity in todays property market is that its at an all-time high, and I’m assuming that FOMO (fear of missing out) is the biggest driver,” he said, adding that the stars had aligned for those hoping to get their first foot on the property ladder.

Many first-home buyers were happy renting, but have now changed direction and want to buy because even with rent reductions, interest rates are so low that its cheaper to buy than to rent,” Mr Panos said.

And where they are looking, he said, lines up with InfoTrack’s latest conveyancing data.

I havent seen a significant trend in buying property outside of metro Sydney, apart from the central coast. First-home buyers are most definitely buying in the north west and south west suburbs of Sydney.”

Notes to editors

For more information about InfoTrack, visit: infotrack.com.au

For all media enquiries or to organise an interview with InfoTrack CEO John Ahern, please contact Sandra Falzon on 0431 703 969 or Sandra.falzon@infotrack.com.au