Polling from realestate.com.au asked first-home buyers about the most affordable suburbs they were considering to enter the property market in NSW.
Realestate.com.au director of economic research Cameron Kusher said most of the suburbs on the list had house or unit prices below the $650,000 threshold for stamp duty exemptions.
“Within Sydney, outer more affordable suburbs are prevalent on the list which is no surprise given first-home buyers tend to be on a lower budget than upgraders, and within these areas grants and stamp duty discounts and exemptions may be applicable on purchases,” Mr Kusher said.
“There should be a greater preparedness from vendors to list their properties which will mean more stock to choose from and a better balance between supply and demand in 2022. This should also contribute to the easing price growth this year.”
For first-home buyers in NSW, Wollongong units ranked at the top of the list of the most sought after suburbs.
This was due to buyers seeking lifestyle areas that were closer to the water and where they could get more bang for their buck.
Real Estate Agent David Greenwood specialises in the Illawarra and Sutherland Shire and said Wollongong provided Sydneysiders with a more affordable alternative.
“The market in Wollongong has increased over the past 12 months, as it’s become easier to travel and is more affordable for first-home buyers,” Mr Greenwood said.
“Work-from home conditions (are) driving demand. City developers, investors, and first-home buyers have all looked at properties in the suburb – many seeking a seachange.”
Multiple units in Wollongong have sold below $700,000, with many first-home buyers avoiding traditional auctions in favour of buying methods they considered less stressful.
Affordability is a major challenge for those looking to enter into the Sydney market for the first time, as prices continue to rise faster than wages and are higher compared to other interstate markets.
Sydney teacher Eloise Clark and her fiance Chris Highman began renting in their Eastwood apartment in 2019, and have since fallen in love with the area.
Whilst they are looking for their first home or unit to buy this year, Ms Clark said it would be difficult to leave Sydney for a more affordable property in Wollongong.
“After all the effort we’ve put into cementing ourselves into our full-time jobs in Sydney, moving outside of the area seems unfeasible when we have such strong connections to friends and family,” Ms Clark said.
“There was a place in Baulkham Hills within our price range, but it wasn’t renovated. We’ve been looking since October 2021 for the right property.”
“We’ve considered places like Eastwood, Epping, Parramatta and Homebush…There’s a lot of places in Western Sydney that would be nice and well connected to public transport and predicted to grow over the next 10 years.”
Ms Clark said that no suburb in Sydney was out of the question, but the infrastructure and proximity to shopping districts were attractive prospects for them when seeking a new home.
“I feel for all the people who are looking for a property who are having difficulty saving up.”
For some buyers in the Sydney market, stamp duty – a state government tax charged as a percentage of the property value – is a huge cost.
“Psychologically, the high prices may make some buyers reluctant to purchase again, especially with the impost of stamp duty. Homeowners may choose to renovate their current home instead of upgrading,” Mr Kusher said.
TOP 10 SUBURBS FOR FIRST-HOME BUYERS
#1: Wollongong (unit)
#2: Blacktown (house)
#3: Parramatta (unit)
#4: Schofields (house)
#5: Orange (house)
#6: Liverpool (unit)
#7: Blacktown (unit)
#8: Oran Park (house)
#9: Dubbo (house)
#10: Epping (unit)
SUBURBS WHERE FIRST HOME BUYERS CAN AVOID PAYING STAMP DUTY
(with median prices under $650,000)
#1: Emerton – $575,000
#2: Lethbridge Park – $597,000
#3: Mannering Park – $600,000
#4: Tregear – $600,000
#5: Blackett – $605,000
#6: Willmot – $612,500
#7: Whalan – $620,000
#8: San Remo – $627,500
#9: Budgewol – $630,000
#10: Airds – $630,000