20 suburbs where first home buyers can escape the ‘rent race'

In determining the list, suburbs were filtered based on three main criteria. First, suburbs must be large enough, affordable, in demand, and must have a tight rental market. 

The remaining suburbs that made the cut were then further whittled down if a buyer’s future mortgage repayments would likely be higher than their current rental commitments.

Finally, the researchers zeroed in to find out how many property developments were currently taking place in each suburb’s local area before they were ranked based on how many developments were taking place in their local area.

After crunching the numbers, Western Australia dominated the list — with seven suburbs in the region entering the top 20. 

Meanwhile, Queensland and South Australia filled six spots each. Rounding up the list was Victoria, with one suburb securing a spot.  

OpenLot.com.au founder Qi Chen said the findings of the study are timely given the current rental crisis. 

“Life is hard for renters right now, given that vacancy rates are very low and rents are rising quickly in many parts of the country.  So it’s natural that a lot of people want to leave the rental market and climb onto the property ladder instead,” he said. 

All the top 20 suburbs included in the list have a vacancy rate of less than 1 per cent based on the most recent data available. 

Mr Chen said that people who are “sick of renting”, may find now to be an opportune time to step onto the property ladder by buying a house-and-land package, highlighting that there’s plenty of housing construction occurring at the moment.

And while the mortgage rates would likely be a growing pocket pain for many buyers currently due to the successive rate hikes, Mr Chen said there are several factors that would provide a tailwind to those who are ready to take on the market.

“Property prices are falling in many regions right now. That’s great if you’re a first home buyer, because it lowers your barriers to entry,” he stated. 

Mr Chen highlighted that several government assistance programs available to first home buyers can also help their case to purchase a property. 

“[At] the federal level, first home buyers can take advantage of the First Home Guarantee and Regional First Home Buyer Guarantee. Also, various states are offering buyer grants and stamp duty concessions,” he added. 

Here is a closer look at the top 20 suburbs where buyers can escape the “rent race”, including the respective number of developments in the local area and nearby suburbs as well as the typical budget for first home buyers.

1. Jacobs Well (Queensland) 

Number of developments: 62

Average budget: $858,000 

2. Willow Vale (Queensland) 

Number of developments: 62 

Average budget: $660,000 

3. Newborough (Victoria) 

Number of developments: 45

Average budget: $407,000

4. Seville Grove (Western Australia)

Number of developments: 44

Average budget: $473,000

5. Brookdale (Western Australia) 

Number of developments: 44

Average budget: $484,000

6. Champion Lakes (Western Australia)

Number of developments: 44

Average budget: $517,000

7. Mount Nasura (Western Australia)

Number of developments: 44

Average budget: $506,000

8. Armadale (Western Australia)

Number of developments: 44

Average budget: $407,000

9. Camillo (Western Australia) 

Number of developments: 44

Average budget: $440,000

10. Kelmscott (Western Australia)

Number of developments: 44

Average budget: $429,000

11. Blakeview (South Australia)

Number of developments: 42

Average budget: $462,000

12. Munno Para West (South Australia)

Number of developments: 42

Average budget: $456,000

13. Smithfield (South Australia)

Number of developments: 42

Average budget: $407,000

14. Andrews Farm (South Australia)

Number of developments: 42

Average budget: $440,000 

15. Elizabeth (South Australia)

Number of developments: 42

Average budget: $407,000 

16. Elizabeth Park (South Australia)

Number of developments: 42

Average budget: $401,500

 17. Meringandan West (Queensland)

Number of developments: 40

Average budget: $632,500

 18. Withcott (Queensland)

Number of developments: 40

Average budget: $627,000

19. Harristown (Queensland)

Number of developments: 40

Average budget: $462,000  

20. North Toowoomba (Queensland)

Number of developments: 40

Average budget: $440,000