Data released by NAB showed that lending to first home buyers (FHB) has increased by 21 per cent over the last 12 months, as consumers rush to dip their toes in the market. 

“First home buyers are back in the market at levels we haven’t seen for a decade,” NAB executive, home ownership, Andy Kerr said.

“Demand has been supported by historically low interest rates and more government support, such as the First Home Loan Deposit Scheme and HomeBuilder. A brief pullback in property prices also helped FHBs as the uncertainty of COVID-19 put many plans on ice, with investor demand slowing noticeably.

“As a result, many of our customers are telling us they are getting their dream home earlier than they thought possible, which is great news.”

The growth in FHB lending is being registered across the country, with Victoria displaying slower overall market activity due to the recent COVID-19 lockdown. However, despite slightly slower activity, a trend towards outer suburbs and regional areas has emerged in the education state.

Queensland registered the strongest growth, with FHB activity up 39 per cent during the three months to 31 October. The sunshine state was followed closely by Western Australia, which saw an increase of 37 per cent, and by NSW/ACT where FHB surged by 31 per cent.  

First home buyer hotspots – outer suburbs and regional areas:

NSW

Greater Sydney

2127 – including Newington +70 per cent

2150 – including Parramatta +66 per cent

2174 – including Abbotsbury +157 per cent

2560 – including Campbelltown North +48 per cent

2570 – including Camden & Oran Park +38 per cent

2747 – including Llandilo & Cambridge Park +54 per cent

2750 – including Penrith +68 per cent

“For first-time buyers, the leading postcodes primarily fall into two regions – one is west of Sydney’s CBD, from Parramatta through to the foot of the Blue Mountains; and the other is Camden and Campbelltown and the surrounding suburbs in Sydney’s south-west,” Mr Kerr said.

Outside Sydney

2259 – including Wyong (Central Coast) +111 per cent

2287 – including Wallsend (Newcastle) +65 per cent

2444 – including Port Macquarie +143 per cent

2478 – including Ballina +148 per cent

“There’s positive stories across regional NSW, particularly coastal towns with the Central Coast one of the most significant growth areas for first home buyers in the country. The access to quality beaches and more relaxed lifestyle are also obvious draw cards further north in and around Port Macquarie and Ballina,” the executive continued.

VIC

West of Melbourne CBD

3217 – including Armstrong Creek +97 per cent

3216 – including Waurn Ponds & Belmont +56 per cent

3338 – including Melton South +38 per cent

3029 – including Tarneit & Hoppers Crossing +22 per cent (postcode with most lending to FHB in the state)

East of Melbourne CBD

3196 – including Chelsea and Edithvale +60 per cent

3175 – including Dandenong +50 per cent

3174 – including Noble Park +32  per cent

3978 – including Clyde +32  per cent

3810 – including Pakenham +27 per cent

3977 – including Cranbourne +23  per cent

“To find the most popular postcodes for FHBs in Victoria you need to head west of Melbourne’s CBD to areas like Hoppers Crossing and the southern suburbs of Geelong, or south-east to suburbs such as Pakenham and Cranbourne. A common thread to many of the Melbourne locations is they are at, or near, the end of train lines. They are also typically a short drive to some of Victoria’s best beaches, be it along the famed Great Ocean Road or the Mornington Peninsula,” Mr Kerr said.

“We’re also seeing early signs of interest in beachside towns around the start of the Great Ocean Road, such as Ocean Grove, Anglesea and Torquay, while inland there’s growing demand in both Ballarat and Bendigo.”

QLD

South-east

4118 – including Browns Plains (Logan City) +106 per cent

4209 – including Coomera (Gold Coast) +94 per cent

4300 – Greater Springfield (Ipswich) +67 per cent (most lending)

4305 – Central Ipswich +93 per cent

4306 – including Karrabin (Ipswich) +58 per cent

4509 – including North Lakes (Brisbane) +99 per cent

North and west

4817 – including Hervey Range and Bohle Plains (Townsville) +64 per cent

4825 – including Mount Isa +115 per cent

“In Queensland, the first home buyer hotspots are more widespread than in any other state, with postcodes in Brisbane, Ipswich, the Gold Coast, Townsville and Mount Isa all making the list. FHBs are considering plenty of options within an hour of Brisbane’s CBD from Ipswich to the east, North Lakes in the north and Coomera on the Gold Coast to the south,” Mr Kerr said.

WA

Perth

6061 – including Nollamara & Mirrabooka +107 per cent

6062 – including Morley +78 per cent

6107 – including Cannington +63 per cent

6110 – including Huntingdale +91 per cent

6112 – including Armadale +63 per cent (most lending)

Regional

6430 – Kalgoorlie +62 per cent

6530 – Geraldton +117 per cent

“In Perth, you don’t need to travel far to find value, given a less buoyant property market over recent years. As a result, the most popular suburbs aren’t as far from the CBD as in the eastern capitals. Areas north of the CBD have proven most popular among first-time buyers, including Nollamara, Morley and Mirrabooka, while there’s also been growing demand in south-east suburbs like Huntingdale and Armadale,” Mr Kerr said.

SA

Adelaide

5085 – including Clearview and Enfield +52 per cent

5086 – including Oakden and Hillcrest +51 per cent (most lending)

5108 – including Salisbury +68 per cent

“There’s plenty of first home buyers looking north in Adelaide, with suburbs like Oakden, Clearview and Salisbury among the more popular,” Mr Kerr said.

“Looking south and while Morphett Vale didn’t quite make our list, it remains in steady demand from first home buyers with its plentiful schools and parks, not to mention easy access to the McLaren Vale.”