First home buyer hotspots revealed

But the research revealed an interesting trend – the return of first home buyers to the cities as the rush into regional areas slows from last year’s remarkable growth.

In fact, Domain’s data pointed to an increase in FHB activity in metro areas by 9 per cent in the first four months of 2021 compared with the last four months of last year, while regional activity declined by 4 per cent in the same period.

“It’s been interesting to see activity slow in regional areas from the final few months of last year, but over a 12-month period, it’s clear the sea and tree change has been incredibly popular for first-time buyers,” NAB executive for home ownership Andy Kerr said.

Ultimately, the current level of first home buyer activity “has been nothing like we’ve seen in a generation”, he highlighted.

“We’ve received very strong demand for the First Home Loan Deposit Scheme (FHLDS)... Record low interest rates and government incentives continue to support demand, and it’s been great to hear stories of some customers purchasing their first home earlier than expected,” Mr Kerr said.

Of the states and territories, Queensland and Western Australia triumphed based on annual results, recording growth in FHB lending of 94 per cent and 92 per cent, respectively.

NSW and the ACT were next with an equal 76 per cent, followed by South Australia and the Northern Territory with 55 per cent, and Victoria and Tasmania with 48 per cent.

“Melbourne trailed all other cities in first home buyer activity last year due largely to COVID-19 impacts, and we have seen an element of catch-up this year,” Mr Kerr noted.

But when compared with the final four months of 2021, Victoria emerged as the frontrunner, with FHB activity up by 26 per cent.

WA followed with 21 per cent, then Queensland with 18 per cent, and South Australia and Northern Territory with 4 per cent each. NSW and ACT stood as the only state and territory to record a decline at 4 per cent.

“First-time buyers appear to be responding to price changes as our list of hotspots has changed significantly from December, with only five postcodes Australia-wide on both lists,” Mr Kerr said.

Hotspots

Across a majority of the states and territories, outer metro areas and coastal towns have gained considerable popularity among first home buyers, according to Mr Kerr.

In Melbourne, for instance, the end of the train lines remained popular due to relative affordability and easy access to significant commercial hubs.

But in contrast with trends that sprouted during the pandemic, inner-city areas are regaining in strength, particularly the apartment markets, the president noted.

“Perhaps the biggest change is the signs of interest in inner-city areas like Richmond and Southbank [in Melbourne]... and Fortitude Valley [in Brisbane], where apartments are likely to be the main purchases for first-time buyers.”

NAB has outlined the current first home buyer hotspots across states and territories based on FHB lending activity:

NSW

Sydney

2138 – including Rhodes +291%

2035 – including Maroubra +238%

2010 – including Darlinghurst, Surry Hills +166%

2763 – including Acacia Gardens +80%

2150 – including Parramatta +87%

2216 – including Rockdale +61%

2066 – including Lane Cove +55%

2229 – including Caringbah +45%

2760 – including Saint Mary’s +45%

Regional

2530 – including Dapto +54%

2444 – including Port Macquarie +30%

2250 – including Gosford +17%

Victoria

Melbourne

3149 – including Mount Waverley +180%

3121 – including Richmond +163%

3136 – including Croydon +155%

3806 – including Berwick +146%

3750 – including Wollert +64%

3150 – including Glen Waverley +59%

3021 – including St Alban’s +51%

3046 – including Glenroy +45%

Regional

3630 – including Shepparton +129%

3400 – including Horsham +123%

3500 – including Mildura +73%

3844 – including Traralgon +59%

Queensland

Brisbane, Gold Coast and Sunshine Coast

4006 – including Fortitude Valley +486%

4170 – including Morningside, Cannon Hill +110%

4068 – including Indooroopilly +102%

4017 – including Bracken Ridge +90%

4122 – including Mount Gravatt +87%

4551 – including Caloundra +53%

4218 – including Broadbeach +39%

4053 – including Everton Park +36%

Regional

4811 – including Stuart (Townsville) +221%

4814 – including Aitkenvale (Townsville) +72%

4670 – Bundaberg +72%

4350 – Toowoomba +31%

4211 – including Beechmont +23%

Western Australia

Perth

6055 – including Caversham, Guildford +73%

6163 – including Kardinya +63%

6164 – including Cockburn +54%

6027 – including Joondalup +53%

6112 – including Armadale +37%

6018 – including Innaloo, Churchlands +27%

6061 – including Mirrabooka +22%

Regional

6210 – Mandurah +110%

6280 – Busselton +22%

6530 – Geraldton +20%

South Australia

Adelaide

5070 – including Payneham +473%

5000 – including CBD +82%

5074 – including Campbelltown, Newton +42%

Regional

5251 – including Mt Barker +76%

ACT

2611 – including Molonglo +67%

2913 – including Palmerston +34%

2914 – including Amaroo +21%

Tasmania

7008 – including Lenah Valley +259%