First home buyers are dominating the Australian real estate market in a manner not seen in more than a decade.
According to realestate.com.au, as Australia’s property market continues to rebound from the coronavirus pandemic, figures provided by the Real Estate Institute of Australia revealed that first home buyers make up a greater percentage of property owners than they have since 2009.
According to the REIA Housing Affordability Report: “[Over the September quarter] the number of first home buyers increased to 36,687, an increase of 36.1 per cent during the quarter and compared to the September quarter 2019.
“First home buyers now make up 40.8 per cent of owner-occupier dwelling commitments, which is the highest since September 2009 where it reached 43.1 per cent.”
It is also the largest quarterly increase in first home ownership since 2010.
Record-low interest rates and the stable market have been the main drivers of this welcome new first home buyer trend, according to REIA president Adrian Kelly, who pointed to a rise in housing affordability over the September quarter.
“This is particularly good news given the large challenges faced by tenants at the outset of the COVID-19 pandemic,” he said.
The First Home Loan Deposit Scheme, which allows first home buyers to purchase a home with as little as 5 per cent deposit, along with with stamp duty exclusions and concessions, has made the market more accessible.
According to the report: “The number of first home buyers increased in all states and territories over the September quarter 2020. The largest increase was in Queensland (62.2 per cent) and the smallest increase in the Australian Capital Territory (15.5 per cent). Compared to the corresponding quarter 2019, the number of first home buyers also increased in all states and territories, ranging from 26.3 per cent in Victoria to 53.5 per cent in Queensland.”