Revealed: Top locations for first-home buyers in early-2023

Despite the rising rates and surging costs of living deterring many first-home buyers from entering the market, there are suburbs and locations in each state that allow the buyer group to thrive.

NAB’s latest study, which analysed the top-selling suburbs over the second half of 2022, showed the likely hotspots first-home buyers are likely to flock to over the coming months.

NAB executive for homeownership Andy Kerr said the key for many first-home buyers in the current climate is to look for opportunities.

"Value and location remain the two most important factors for first home buyers when looking to purchase their first property," he said.

“Despite the overall market softening, first home buyers are bucking the trend with sales staying stable nationally and growing in some of the hottest suburbs.”

Mr Kerr said many of the top locations for first-home buyers are also good for investors, given the high price and rental yield growth experienced over the last five years.

Here are the top locations for first-home buyers in each state and some commentary from Mr Kerr:

New South Wales

Mr Kerr said Schofields and Liverpool are some of the most in-demand suburbs for first home buyers in NSW.

“The new housing developments here are falling within the price thresholds for a number of state government assistance schemes, and they have growing public transport options, retail and education precincts and parks in a suburban environment,” he said.

Read more: NSW investment hotspots for 2023

Victoria

First-home buyers in Victoria are gravitated towards growth areas to the north, west and south-east of Melbourne, particularly those with good amenities, growing transportation links, new schools, and a more relaxed, suburban lifestyle.

“Melbourne’s population is tipped to outpace Sydney’s by 2031 and these areas along key transport corridors will be where we continue to see that growth,” Mr Kerr said.

Read more: Melbourne suburbs investors should watch out for in 2023

Queensland

Toowoomba is one of, if not the best suburb in Queensland right now, given its accessibility to Brisbane, laidback lifestyle, and spacious land sizes.

“With billions of dollars of investment coming down the pipeline on the Inland Rail Link and a new Toowoomba Hospital, the Garden City is shaping up as an exciting place to buy and live,” Mr Kerr said.

Read more: Queensland and Brisbane hotspots for investment in 2023

South Australia

Adelaide’s southern suburbs remain the most attractive locations for first-home buyers in South Australia.

“Transport upgrades make Morphett Vale, Woodcroft and Hallett Cove even more attractive places to live and commute into the CBD. Mt Barker is a gem in the Adelaide Hills, providing easy access to growing amenities and fresh air,” Mr Kerr said.

Read more: Top Adelaide suburb picks for property investors in 2023

Western Australia

Perth’s southeast is the most popular region for first-home buyers right now, thanks to its affordable housing, good access to transport, and high rate of employment.

“Recently opened schools and access to parks and bushland give first home buyers in Harrisdale access to the suburban lifestyle with the chance to escape the hustle and bustle,” Mr Kerr said.

Read more: Perth hotspots for investment in 2023

Tasmania

Also read: Tasmania hotspots for investment in 2023

Australian Capital Territory

Also read: Canberra hotspots for investment in 2023

Northern Territory

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