You might expect first homebuyers to be targeting the lower end of the property market, struggling to get a foot on the property ladder financially, but somewhat surprisingly there’s still plenty hitting up the inner city areas.
The trend is not just being seen in Melbourne, it’s happening all around Australia, in places like Surry Hills in Sydney and Southbank and Richmond here locally.
According to National Bank research it’s these relatively expensive areas that are still attracting attention from some first homebuyers.
Lending to first homebuyers hit a record high in April, with the NAB dishing out loans to the sector at an increase of 67 per cent on the same time last year.
The outer metro suburbs of Melbourne are still the most popular for budget-conscious first home buyers but a healthy portion are looking at inner-city apartments where prices have stayed low.
These prospective first homebuyers could capitalise on the large amount of investors preparing to sell their failed inner-city purchases.
“The level of first homebuyer activity has been like nothing we’ve seen in a generation,” NAB executive of home ownership Andy Kerr told News.com.
“Record low interest rates and government incentives continue to support demand and it’s been great to hear stories of some customers purchasing their first home earlier than expected.
“However, we also recognise rising house prices are creating a challenge for some Australians as supply levels remain below average.”
In Melbourne, Mount Waverley is currently the most sought-after suburb for first homebuyers, followed by Richmond and areas like Croydon and Berwick.
“The end of the train lines, particularly to the south-east remain popular, where there is easy access to the Mornington Peninsula continues to draw plenty of buyers. This includes areas like Dandenong, Cranbourne and Frankston, which only just missed making the list and were among the top performers last year,” Mr Kerr told News.com.
“Perhaps the biggest change is the signs of interest in inner-city areas like Richmond and Southbank, where apartments are likely to be the main purchases for first-time buyers.”