First homebuyers are getting back into the Melbourne property market thanks largely to new changes to stamp duty.
The CoreLogic Property Pulse report has found that owner-occupier first home buyer finance commitments in August hit their highest level since 2009.
In that month, 10,227 first home buyers took up a finance commitment and that represented 17.2 per cent of all owner-occupier housing finance commitments.
CoreLogic research analyst Cameron Kusher told The Adviser the figures indicated that recent changes to stamp duty were getting more first home buyers into the market.
“The data highlights that stamp duty is one of the key barriers for first home buyers wanting to participate in the housing market, at least in NSW and Victoria,” he said.
“The changes, effective from July 1, mean that first home buyers purchasing properties below $650,000 in NSW and below $600,000 in Victoria do not have to pay stamp duty.”
“In NSW, stamp duty concessions are available up to a purchase price of $800,000 for first home buyers, and in Victoria, concessions are available up to a purchase price of $750,000.”
“Between June and August, the number of owner-occupier first home buyer housing finance commitments has increased by 59 per cent in NSW and 34 per cent in Victoria.”
Mr Kusher said first home buyers still made up greater proportions of the owner-occupier segments of property markets in states outside of Victoria and NSW.