First Home Buyers most active in QLD and WA

March 11, 2015
Michelle Wishart

New research from Mortgage Choice has shown the level of first home buyer activity differs dramatically from state to state.

According to Mortgage Choice’s recent new home loan approval data, Queensland and West Australian first home buyers accounted for almost one in five loans written throughout the month of February.

By comparison, in New South Wales, first home buyers accounted for less than one in every 20 loans written.

There are many reasons why first home buyer numbers differ from state to state. New South Wales has the smallest percentage of first home buyers entering the market which is unsurprising when you consider that the state’s capital, Sydney, boasts the country’s highest median dwelling price. New research conducted by RP Data shows Sydney’s median dwelling price is currently $680,000 - $150,000 higher than its nearest rival Darwin. 

In addition,New South Wales no longer offers grants or stamp duty concessions to those first home buyers purchasing an established property.

On the flipside, Queensland’s capital city of Brisbane boasts a much lower median dwelling price ($452,000) as well as certain stamp duty concessions for those first home buyers looking to purchase an established property.

Research shows more than 70% of first home buyers who purchased their property within the last two years bought an established dwelling. As such, it isn’t surprising to see first home buyer participation stronger in the states that not only offer concessions or grants to those looking to purchase an established dwelling, but those states boasting a lower median dwelling price.

Moving forward,  the country should start to see a slight pickup in the level of first home buyer activity as low interest rates combined with moderating property price growth lures these buyers into the market.

Furthermore, some of the state governments have suggested that they will introduce various new first home buyer incentive programs if elected. If these promises come to fruition, we should see a small lift in first home buyer activity.

If you would like learn more about your home loan or financial advice options, call George Cremona on 0429 707 655 or email

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