Homebuyers in WA and South Australia were the most positive about breaking into the housing market, according to the latest research from NAB.
The study showed 36% of residents in WA and 35% in SA had the highest level of optimism about homebuying during the second quarter of the year.
These levels were higher than the national average of 29%, which was a significant decline from 40% in the first quarter of the year.
The NAB study determined the top suburbs the capital of these states where it is more desirable to buy than rent based on median prices.
In Perth, some of the go-to locations are Armadale, Greenfields, Port Kennedy, Clarkson, and Baldivas.
The unit markets across Greater Perth, Perth CBD, East Perth, South Perth, Rivervale, Maylands, and Fremantle also provide an affordable opportunity for buyers.
Outside these Perth locations, WA’s Port Hedland, Newman, Broome, and South Hedland are also good markets for buyers.
Also read: Renting vs buying in WA
Meanwhile, suburbs in the outer north of Adelaide, including Elizabeth and Salisbury, have the most affordable houses in the city. For unit seekers, the Adelaide CBD and Glenelg is the place to be.
Zooming out to the rest of South Australia, home seekers can get the best deal when they buy in Naracoorte, Port Augusta, Mount Gambier, Murray Bridge, Port Lincoln, and Victor Harbor.
NAB executive for homeownership Andy Kerr said outer-metro suburbs and inner-city apartments continue to provide some of the best opportunities for homebuyers.
“Property prices have not risen as much in outer-metro suburbs and first home buyers are very good at picking up on where property prices have been more subdued,” Mr Kerr said.
“The correlation between outer-metro suburbs and buying new builds is certainly playing through in finding a bargain.
He said first-home buyers continue to be the biggest beneficiaries of the current market conditions.
“Record low interest rates and first home buyer incentives like the First Home Loan Deposit Scheme have driven strong demand.
“House prices are rising but there’s still plenty of opportunities for Australians to buy their dream home rather than rent it.
“The simple reason for this is the record low rates on offer, with many mortgage rates still coming with a 2 in front of them.”
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