First home buyers bounce back in NSW and VIC markets

According to the latest data from the Australian Bureau of Statistics (ABS), the number of first home buyer and owner occupier housing finance commitments has bounced back during the month of August.

August 2017 saw 10,227 first home buyer and owner occupier finance commitments, which is the greatest number since December 2009. This number also represented 17.2% of all owner occupier housing finance commitments which is its highest proportion since July 2013.

What has caused the number of first home buyers to rebound?

So, what has caused this number of housing finance commitments for first home buyers and owner occupiers to rebound? One of the key drivers is the recent policy changes in both NSW and VIC for first home buyers in terms of stamp duty. From 1 July 2017, first home buyers who purchase a property in NSW under $650,000 or under $600,000 in VIC no longer have to pay stamp duty, which is a massive saving.

For first home buyers who purchase a slightly more expensive property, then there are stamp duty concessions available. In NSW, stamp duty concessions are available up to $800,000, whilst stamp duty concessions in VIC are available on properties up to $750,000.

ABS data showed that the number of owner occupier and first home buyer housing finance commitments increased by 59% in NSW and 34% in VIC between the months of June and August. This reflects how stamp duty is still one of the major costs besides the property itself that is stopping first home buyers getting onto the property market, especially in NSW and VIC markets where stamp duty on a $700,000 home in NSW would cost almost $27,000 for a home buyer. As a first home buyer, this is now just $10,490.

The data also shows that first home buyers outside of NSW and VIC make up a greater proportion of the owner occupier segment, helped by the more affordable housing supply. In QLD, eligible first home buyers can also receive the First Home Owner Grant of $20,000, but only until 31 December 2017, where this reverts back to $15,000.


In August 2017, NSW had 2,426 first home buyer commitments, the greatest monthly number since January 2012. First home buyers made up 12.9% of owner occupier commitments during August which was the highest proportion since October 2012 and up from February’s low of 7.5%.


In Victoria for August 2017, there were slightly more first home buyer commitments, with 3,162 first home buyers, accounting for 18.3% of all owner occupier commitments. This was the highest number of commitments since December 2009, and the highest proportion since August 2013.


For Queensland, August 2017 saw an increase in first home buyer finance commitments, sitting at 2,190, but the number of commitments was lower than those in June. However, the number of commitments in August was 17.9% higher than its long-term average. In August, first home buyers made up 19.4% of all owner occupier finance commitments, which was down from 20.1% in July.


Overall, the number of first home buyer housing finance commitments in NSW and VIC has seen an increase, helped by the changes in stamp duty, making purchasing a new home slightly more affordable in these states which are recording some of the country’s highest property prices.

Although first home buyers no longer have to pay stamp duty on properties below $650,000 in NSW, there are still many properties valued at more than this. However, iBuyNew does have some excellent new properties in Sydney under $500,000, allowing you to take advantage of the full stamp duty concessions. Contact iBuyNew on 1300 123 463 to learn more about these affordable Sydney property opportunities.

With Spring selling season well and truly here, it is expected that the number of first home buyer finance commitments will continue to rise in NSW and VIC as buyers take advantage of these offers and concessions to get a foothold on the property ladder.

Get in Touch

Are you a first home buyer looking to purchase your first home in NSW, VIC or QLD? We have a great number of new property opportunities available right now which might be of interest to you. From boutique apartments and generous house and land packages to stunning high rise apartment developments with all your lifestyle amenities to lead a luxurious and prestigious lifestyle, we have a property for you. Contact iBuyNew today to let us help you find the property that’s right for you.

Give us a call on 1300 123 463 to learn more.
Published on 26th of October 2017 by Marty Stanowich
Marty Stanowich
Marty Stanowich


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