Western Australia has the most active first home buyers in Australia, but soaring house prices have made property market debutants a rarity in NSW.
In Western Australia, first home buyers accounted for almost one in five loans written in February, closely followed by Queensland and Victoria on equal pegging at 17 per cent, figures from Mortgage Choice on Wednesday reveal.
But in NSW, where high prices make buying a home a more daunting prospect and many government incentives have been removed, first timers accounted for less than four per cent of new loans.
“This is largely unsurprising when you consider that the state’s capital, Sydney, boasts the country’s highest median dwelling price,” Mortgage Choice spokeswoman Jessica Darnbrough said.
Sydney’s median dwelling price of $680,000 is the highest of all Australian cities – $150,000 higher than closest rival Darwin.
In comparison, first time buyers in Queensland enjoy stamp duty concessions for established properties, along with a far lower median dwelling price of $452,000 in Brisbane.
Australiawide, first home buyers are having a tough time breaking into the market, forced to compete with investors, attracted by low interest rates, being driven to housing.
First home buyers accounted for just 12.4 per cent of home loan approvals in February, down from 15.8 per cent in the same month last year, according to Mortgage Choice figures.
Treasurer Joe Hockey has proposed allowing first home buyers to dip into their superannuation to help them get into the property market.
But Ms Darnbrough expects a slight pick up in first home buyer activity in the near future as low interest rates and proposed government incentives lure new buyers into the market.
“Some state governments have suggested that they will introduce various new first home buyer incentive programs if elected,” she said.
“If these promises come to fruition, we should see a small lift.”
FIRST HOME BUYER PARTICIPATION BY STATE
- NSW – 3.9 pct of new home loans
- SA – 4.7 pct
- VIC – 17 pct
- QLD – 17 pct
- WA – 19.6 pct