New research has revealed dramatically varied levels of first home buyer activity across Australia’s states, where New South Wales emerged to have the smallest percentage of first home buyers entering the market.
Mortgage Choice’s new data found NSW’s first home buyers accounted for less than one in every 20 loans written.
This is a huge gap with Queensland and West Australian’s data, where first home buyers accounted for almost one in five loans written throughout the month of February.
“New South Wales has the smallest percentage of first home buyers entering the market. That said, this is largely unsurprising when you consider that the state’s capital, Sydney, boasts the country’s highest median dwelling price. New research conducted by RP Data shows Sydney’s median dwelling price is currently $680,000 - $150,000 higher than its nearest rival Darwin,” spokesperson Jessica Darnbrough said.
“In addition, New South Wales no longer offers grants or stamp duty concessions to those first home buyers purchasing an established property.”
Darnbrough added that Brisbane has a much lower median dwelling price of $452,000 as well as certain stamp duty concessions for those first home buyers eyeing an established property.
“Our research shows more than 70% of first home buyers who purchased their property within the last two years bought an established dwelling. As such, it is isn’t surprising to see first home buyer participation stronger in the states that not only offer concessions or grants to those looking to purchase an established dwelling, but those states boasting a lower median dwelling price,” she said.
South Australia wasn’t far behind from NSW as its first home buyers only made up 4.68% of all loans written.
“On average, our data shows first home buyers account for just over 12% of all loans written – down from 16% in 2014,” Darnbrough said.
Collections: Mortgage News