Invest
Federal incentives are driving more first home buyers into the market
While property prices continue to grow, new research suggests that the government’s current crop of first home buyer incentives is having an impact on this segment of the market.
Federal incentives are driving more first home buyers into the market
While property prices continue to grow, new research suggests that the government’s current crop of first home buyer incentives is having an impact on this segment of the market.
The numbers don’t lie: Australia’s property market is a battleground between rising prices and first home buyer incentives.
Commenting on the release of new market research, NAB executive Andy Kerr said that momentum and confidence in the market has continued to drive strong results in recent months.
Despite the challenges presented by recent COVID-19 outbreaks and lockdowns, Mr Kerr said that NAB “recently saw our strongest month of home lending on record in June, which is a sign of very strong demand”.
Although Mr Kerr acknowledged some headwinds “in slower population growth and the impact of rising house prices”, he predicted that low rates and government programs like the First Home Loan Deposit Scheme will “continue to drive a strong housing market”.
Introduced back in 2017 and boosted in this year’s federal budget, the First Home Super Saver Scheme (FHSSS) allows eligible first home buyers to withdraw up to $50,000 in voluntary super contributions early for the purpose of raising a deposit for a property.
While the scheme hasn’t been without controversy, Mr Kerr noted that “confidence in the housing market continues to improve, and that shows in the amount of activity we are seeing through mortgage applications”.
Mr Kerr said that despite the current lockdowns impacting the lives of many Australians, “there is still appetite for conversations with customers to buy a home”, with more than a third of appointments in the last week conducted via video call.
NAB also found that half of surveyed first home buyers said they were more willing to buy new than they were two years ago. Northern Territory recorded the highest increase here, at 83 per cent, while NSW held the lowest spot on the table at 46 per cent.
Attributing this trend to the government’s current cadre of first home incentive schemes, NAB noted that the level of owner-occupiers has risen to 34.9 per cent, up from 30.1 per cent in the first quarter of 2021.
They found that buyers in this segment were most active in NSW, accounting for 38.5 per cent of home buyers. Queensland scored similarly high at 37.5 per cent. Western Australia and South Australia tied last at 30 per cent.
While incentives like the FHSSS are driving additional first home buyers into the market, NAB also found that rising house prices are continuing to have a significant impact on first home buyers.
NAB noted that this impact was highest in NSW and the ACT. Meanwhile, the impact of house prices for first home buyers was lowest in the NT, “where median house prices are also the lowest in the country”.
RELATED ARTICLES
About the author
About the author
Property
Australia’s rental squeeze is now a business problem: inflation, capacity and the new growth calculus
Record-low rental vacancies are no longer just a social headline – they’re reshaping cost structures, wage dynamics and capital allocation across corporate Australia. With economists warning of a ...Read more
Property
Rents Are Repricing Australia Inc: What record‑low vacancies mean for inflation, talent and strategy
Australia’s rental market has slipped into a vacancy desert, and it’s not just tenants feeling the heat. Persistently tight supply is pushing up rents, embedding services inflation and complicating ...Read more
Property
Young buyers poised for a comeback as 5% First Home Guarantee takes effect
In a move set to reshape the Australian property landscape, the government’s revamped First Home Guarantee is poised to open the doors of homeownership to a new generation of young AustraliansRead more
Property
AFG Securities waives settlement fees for first-home buyers, signalling strategic shift
In a strategic move aimed at easing the financial burden on first-home buyers, AFG Securities has announced the elimination of settlement fees on select loans, potentially saving customers up to $699Read more
Property
From trust woes to wealth: Australian agencies' secret to boosting prices
In Australia’s residential market, trust is no longer a nice-to-have—it’s a pricing variable. Persistent distrust of real estate agents is depressing vendor outcomes and inviting regulatory heat, but ...Read more
Property
Reality check for first home buyers: Affordable suburbs with 5% deposit
In a significant development for Australian first home buyers, a new property search tool from Aussie Home Loans is set to transform the way prospective homeowners approach the market. As the Federal ...Read more
Property
Trust as a performance multiplier in Australia's real estate market
In Australia’s A$10–11 trillion housing market, trust is emerging as a crucial factor that sellers and agencies can no longer afford to overlook. Traditionally viewed as a soft metric, trust is now ...Read more
Property
LJ Hooker Lake Macquarie makes a splash with Belmont buy as real estate consolidation looms
LJ Hooker Lake Macquarie’s acquisition of the Belmont office, including its rent roll, is less about shopfronts and more about balance‑sheet resilience. In a market where listings ebb and flow with ...Read more
Property
Australia’s rental squeeze is now a business problem: inflation, capacity and the new growth calculus
Record-low rental vacancies are no longer just a social headline – they’re reshaping cost structures, wage dynamics and capital allocation across corporate Australia. With economists warning of a ...Read more
Property
Rents Are Repricing Australia Inc: What record‑low vacancies mean for inflation, talent and strategy
Australia’s rental market has slipped into a vacancy desert, and it’s not just tenants feeling the heat. Persistently tight supply is pushing up rents, embedding services inflation and complicating ...Read more
Property
Young buyers poised for a comeback as 5% First Home Guarantee takes effect
In a move set to reshape the Australian property landscape, the government’s revamped First Home Guarantee is poised to open the doors of homeownership to a new generation of young AustraliansRead more
Property
AFG Securities waives settlement fees for first-home buyers, signalling strategic shift
In a strategic move aimed at easing the financial burden on first-home buyers, AFG Securities has announced the elimination of settlement fees on select loans, potentially saving customers up to $699Read more
Property
From trust woes to wealth: Australian agencies' secret to boosting prices
In Australia’s residential market, trust is no longer a nice-to-have—it’s a pricing variable. Persistent distrust of real estate agents is depressing vendor outcomes and inviting regulatory heat, but ...Read more
Property
Reality check for first home buyers: Affordable suburbs with 5% deposit
In a significant development for Australian first home buyers, a new property search tool from Aussie Home Loans is set to transform the way prospective homeowners approach the market. As the Federal ...Read more
Property
Trust as a performance multiplier in Australia's real estate market
In Australia’s A$10–11 trillion housing market, trust is emerging as a crucial factor that sellers and agencies can no longer afford to overlook. Traditionally viewed as a soft metric, trust is now ...Read more
Property
LJ Hooker Lake Macquarie makes a splash with Belmont buy as real estate consolidation looms
LJ Hooker Lake Macquarie’s acquisition of the Belmont office, including its rent roll, is less about shopfronts and more about balance‑sheet resilience. In a market where listings ebb and flow with ...Read more
