Exclusive research from PropTech company InfoTrack reveals New South Wales first-time buyers in their 20s are still getting into the market even when faced with a housing boom.
New research conducted by InfoTrack, innovators in legal and conveyancing technology, shows that although annual home prices across New South Wales have increased at record speeds, savvy young purchasers are still managing to get into homeownership.
The latest first home buyer data collected by InfoTrack shows that 38.4 per cent of first home buyers who bought property over the last two months in New South Wales were aged between 18 and 29 years. During the same timeframe, 41.5 per cent of first home buyers in the state were 30 to 39 year olds while 14.32 per cent were 40 to 49 year olds.
Sydney’s dwelling values jumped 20.9 per cent in the year to August, and in regional New South Wales have increased by 24.8 per cent over the same time according to CoreLogic figures. Nationally, Australian housing values are 18.4 per cent higher than this time last year - the fastest pace of growth in more than 30 years.
John Ahern, CEO of InfoTrack, said while rising prices might have spooked some first home buyers, it was encouraging to discover a third of those who have bought were Generation Z (born between 1995 and 2009) or the younger end of Generation Y (born between 1980 and 1994).
“It’s promising that our data shows young buyers are determined to get into the property market, whatever the hurdles. It just goes to show that the Great Australian Dream of homeownership can be achieved in your 20s,” he said.
“It paints a good picture for these switched-on young buyers. Despite the overall property boom often spelling doom and gloom for first home buyers, it’s encouraging to see the drive still there for our youngest home-owners,” he added.
Mr Ahern explained that the pandemic and current state of the economy actually presented a perfect property storm for first home buyers that otherwise might not have arisen.
“This low interest rate climate - combined with the fact that young Australians have had limited options to spend their extra cash during 18 months of on again off again lockdowns and travel restrictions - has led many to consider that property is the best place to put those savings,” he said.
The bi-monthly research by InfoTrack also revealed where first home buyers are purchasing in the state with their focus firmly on the outer ring of Greater Sydney where detached housing is considered more affordable. According to the latest InfoTrack data, 63 per cent of recent first home buyers have purchased a Torrens title home.
With a median house price of $745,000, Austral offers first home buyers a lower entry point compared with other suburbs, especially those closer to the Parramatta or Sydney CBDs.
“Austral has plenty of potential as it’s going to be in close proximity of Sydney’s second airport, which is being built virtually next door. It also has plenty of land, so building a decent sized house is a realistic option for young buyers hoping to purchase a long-term family home,” he said.
In Marsden Park, buyers can expect to pay a little more, but the amenities are well established.
“The average sale price in Marsden Park is around $875,000 and it ticks a lot of boxes for first home buyers. There is a lot of green space, views of the Blue Mountains, and access to infrastructure such as the railway station,” Mr Ahern said.
One suburb in Sydney’s west which has climbed the popularity stakes among first home buyers in recent months is Kingswood in the Penrith LGA.
“The neighbourhood of Kingswood has seen a huge jump in demand over the past couple of months. It was sitting in equal 20th position when we last collated the data back in June, but now it sits at fourth place. Considering it has both the Nepean Hospital and a University of Western Sydney campus within its borders, it has a lot to offer also,” he said.
InfoTrack’s research also unveiled that Greystanes, which previously ranked ninth, was now sixth on the list and regional areas such as Dubbo and Wagga Wagga had fallen out of the top 10 over the last two months.
For further information visit InfoTrack.