First home buyer hotspots revealed

By Bianca Dabu 21 June 2021 | 1 minute read

Backed by government stimulus and low interest rates, first home buyers have been flocking into the market, but their buyer preferences have changed slightly.

First home buyer hotspots revealed

First home buyers have been getting their hands on a record number of loans, with the National Australia Bank (NAB) reporting a 67 per cent surge in first home buyer lending in the first four months of 2021, compared with the same period last year.

But the research revealed an interesting trend – the return of first home buyers to the cities as the rush into regional areas slows from last year’s remarkable growth.

In fact, Domain’s data pointed to an increase in FHB activity in metro areas by 9 per cent in the first four months of 2021 compared with the last four months of last year, while regional activity declined by 4 per cent in the same period.

“It’s been interesting to see activity slow in regional areas from the final few months of last year, but over a 12-month period, it’s clear the sea and tree change has been incredibly popular for first-time buyers,” NAB executive for home ownership Andy Kerr said.


Ultimately, the current level of first home buyer activity “has been nothing like we’ve seen in a generation”, he highlighted.

“We’ve received very strong demand for the First Home Loan Deposit Scheme (FHLDS)... 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,” Mr Kerr said.

Of the states and territories, Queensland and Western Australia triumphed based on annual results, recording growth in FHB lending of 94 per cent and 92 per cent, respectively.

NSW and the ACT were next with an equal 76 per cent, followed by South Australia and the Northern Territory with 55 per cent, and Victoria and Tasmania with 48 per cent.

Melbourne trailed all other cities in first home buyer activity last year due largely to COVID-19 impacts, and we have seen an element of catch-up this year,” Mr Kerr noted.

But when compared with the final four months of 2021, Victoria emerged as the frontrunner, with FHB activity up by 26 per cent.

WA followed with 21 per cent, then Queensland with 18 per cent, and South Australia and Northern Territory with 4 per cent each. NSW and ACT stood as the only state and territory to record a decline at 4 per cent.

“First-time buyers appear to be responding to price changes as our list of hotspots has changed significantly from December, with only five postcodes Australia-wide on both lists,” Mr Kerr said.


Across a majority of the states and territories, outer metro areas and coastal towns have gained considerable popularity among first home buyers, according to Mr Kerr.

In Melbourne, for instance, the end of the train lines remained popular due to relative affordability and easy access to significant commercial hubs.

But in contrast with trends that sprouted during the pandemic, inner-city areas are regaining in strength, particularly the apartment markets, the president noted.

“Perhaps the biggest change is the signs of interest in inner-city areas like RichmondRichmond, SA Richmond, VIC Richmond, NSW Richmond, TAS Richmond, NSW and Southbank [in Melbourne]... and Fortitude Valley [in Brisbane], where apartments are likely to be the main purchases for first-time buyers.”

NAB has outlined the current first home buyer hotspots across states and territories based on FHB lending activity:



2138 – including Rhodes +291%

2035 – including Maroubra +238%

2010 – including Darlinghurst, Surry Hills +166%

2763 – including Acacia Gardens +80%

2150 – including Parramatta +87%

2216 – including Rockdale +61%

2066 – including Lane Cove +55%

2229 – including Caringbah +45%

2760 – including Saint Mary’s +45%


2530 – including Dapto +54%

2444 – including Port Macquarie +30%

2250 – including Gosford +17%



3149 – including Mount Waverley +180%

3121 – including Richmond +163%

3136 – including CroydonCroydon, VIC Croydon, NSW Croydon, SA +155%

3806 – including Berwick +146%

3750 – including Wollert +64%

3150 – including Glen Waverley +59%

3021 – including St Alban’s +51%

3046 – including GlenroyGlenroy, NSW Glenroy, VIC +45%


3630 – including Shepparton +129%

3400 – including Horsham +123%

3500 – including Mildura +73%

3844 – including Traralgon +59%


Brisbane, Gold Coast and SunshineSunshine, NSW Sunshine, VIC Coast

4006 – including Fortitude Valley +486%

4170 – including Morningside, Cannon Hill +110%

4068 – including Indooroopilly +102%

4017 – including Bracken Ridge +90%

4122 – including Mount Gravatt +87%

4551 – including Caloundra +53%

4218 – including Broadbeach +39%

4053 – including Everton Park +36%


4811 – including Stuart (Townsville) +221%

4814 – including Aitkenvale (Townsville) +72%

4670 – Bundaberg +72%

4350 – Toowoomba +31%

4211 – including Beechmont +23%

Western Australia

PerthPerth, TAS Perth, WA

6055 – including Caversham, GuildfordGuildford, WA Guildford, NSW +73%

6163 – including Kardinya +63%

6164 – including Cockburn +54%

6027 – including Joondalup +53%

6112 – including ArmadaleArmadale, WA Armadale, VIC +37%

6018 – including Innaloo, Churchlands +27%

6061 – including Mirrabooka +22%


6210 – Mandurah +110%

6280 – Busselton +22%

6530 – Geraldton +20%

South Australia


5070 – including Payneham +473%

5000 – including CBD +82%

5074 – including CampbelltownCampbelltown, NSW Campbelltown, SA, Newton +42%


5251 – including Mt Barker +76%


2611 – including Molonglo +67%

2913 – including Palmerston +34%

2914 – including Amaroo +21%


7008 – including Lenah Valley +259%

About the author

First home buyer hotspots revealed
First home buyer hotspots revealed
spi logo

Get the latest news & updates

Join a community of over 100,000 property investors.

Check this box to receive podcast updates

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.