• Christmas comes early for first home buyers

    Christmas comes early for first home buyers

    The strength of the Australian property market in the last few years has made it tough for first home buyers to step onto the property ladder, particularly in Sydney and Melbourne. 

    In response, NSW and Victoria introduced improved stamp duty concessions for first home buyers from 1 July 2017. And when you look at the latest data from the Australian Bureau of Statistics, those incentives seem to be working. 

    In the month of August, 10,227 first home buyers took out owner occupier loans. That was the highest monthly figure since December 2009. Between June and August, the number of owner occupier loans to first home buyers increased by 59% in NSW and 34% in Victoria1.

    Another factor helping first home buyers has been a softening of the property market in recent months. While conditions continue to vary significantly around the country (see the latest figures below), the 5.5% growth for our combined capitals in the year to November was well down on the 10.5% growth we reported in July2. Auction clearance rates have also dipped on average since this time last year3

    So what does this mean for existing home owners? Increased demand from first home buyers can help push up the prices of entry-level properties, which may be good news if you’re looking to upsize or sell an investment property. Upsizers may also benefit from softer market conditions when it comes to their next purchase. 

    Whatever your property goals in 2018, we look forward to keeping you updated each quarter. In the meantime, we wish you all the best for a safe and enjoyable festive season.

    Median dwelling (house/unit) prices at 30 November 20172 

    City Median dwelling price (house and units) Capital growth last 12 months
    Sydney $904,041 5.0%
    Melbourne  $718,325 10.1%
    Brisbane $490,915 2.4%
    Adelaide $432,126  3.4%
    Perth $463,026 -2.6%
    Darwin $432,774 -5.5%
    Hobart $398,093 11.5%
    Canberra $588,788 5.8%
    Combined capitals $655,132 5.5%

    First Home Buyers Bounce Back on Stamp Duty Concessions in Vic and NSW’ – CoreLogic, 23 October 2017 

    2 Corelogic Home Value index. 1 November 2017

    3 Digital Finance Analytics blog, 11 November 2017


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    The information here is of a general nature only and is not intended to constitute financial or tax advice. You should consult your professional adviser, accountant or taxation expert for advice specific to your personal circumstances.

    The views and opinions expressed in this article are those of the author alone and do not necessarily represent the views or opinions of RAMS Financial Group Pty Ltd ABN 30 105 207 538 (RAMS),  Westpac Banking Corporation ABN 33 007 457 141 (Westpac) or their related bodies corporate. This article is strictly for information purposes only and neither RAMS, Westpac nor any of their related bodies corporate make any representation as to the accuracy or completeness of the information in this article or endorse the views expressed in it.