Blog Popular suburbs for first home buyers in 2020

Popular suburbs for first home buyers in 2020

02 April 2020

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With interest rates on mortgages at record lows and house prices now likely to fall, it could be worth considering entering the market now if you’re a first home buyer.

It would appear some buyers are already doing that, with first home buyers making up 29.8% of the market in the second half of last year - above the decade average of 25%.

So if you are considering buying your first home, here are some of the top suburbs for first home buyers in 2020.

Sydney

First home buyers hoping to snag a property close to the city may have to get used to apartment living because it’s a unit market in Sydney. With house prices tipped to surge 10% this year, you’ll likely have to get at least 35 km out of the city to find a free-standing dwelling under $700k.

  • Canterbury. Canterbury is one of the only suburbs that’s close to the city (within 10 km) with a bounty of two-bedroom apartments with a median price of $650k. South-west of the CBD and only 20 minutes to the city by train, Canterbury is filled with young professionals and families.

  • Campbelltown. If you want to be close to the city (50 min drive) but far enough away that it’s a distant memory on weekends, Campbelltown is for you. With a median house price of $545,000 and a median unit price of $415,000, Campbelltown is a popular choice for first home buyers.

  • Mount Druitt. With 87% of properties in Mount Druitt under $700K, it’s an obvious choice for first home buyers looking to purchase an affordable property.

  • Newtown. If it’s Newtown you’ve got your heart set on, you’ll have to settle for an apartment because houses here go for just over a million. Units, on the other hand, are a bit more affordable with a median price of $689,000. It’s also an in-demand suburb to live in, so you’ll have to act fast to get into the market.

Melbourne

Melbourne house prices are tipped to rise by 8% this year which would bring the median price up to $974,000. But there are still properties to be found under $700k if you know where to look.

  • Craigieburn. Craigieburn is emerging as a first home buyer hotspot for its affordable properties and proximity to the city. House prices sit at around $530k while units have a median price of only $375k.

  • Broadmeadows. Responsible for rearing Eddie McGuire and Eric Bana, Broadmeadows (or Broadie as it’s affectionately known by the locals), is a popular spot for first home buyers. With a median house price of $523,000 and $402,000 for units, it’s easy to see why first home buyers are flocking to the area.

  • Tarneit. First-time buyers have their sights set on the booming outer suburbs of Melbourne like Tarneit, where the median house price is an affordable $555k.

  • Roxburgh Park. 29 km north of the city, Roxburgh Park is becoming a first home buyer hub for its affordable houses and proximity to the city.

Brisbane

  • The Gap. You’re only 8 km from the city but you’d never know it because The Gap backs onto bushland and national parks, making it the perfect escape for inner-city workers. The Gap is surprisingly affordable for first home buyers with units going for around $560k, while houses are a touch over $700k.

  • Stafford. A mere 6 km to the city and with a Bunnings and Westfield right on your doorstep, Stafford is a great suburb for inner-city workers. The median house price of $630,000 will get you a three-bedroom house, while the median unit price of $350,000.

  • Everton Park. With about 60% of property transactions between $500,000 and $700,000, Everton Park is becoming a hotspot for first home buyers. Within the magical 10km radius of the city, Everton Park is affordable for first home buyers with a median price of $615k.


House prices in Australia are tipped to rise by as much as 8% and unit prices by 6% in 2020, according to Domain’s recent Property Price Forecast report. If that were to happen, it would push the median house price up to $874,000 and the median unit price to nearly $600,000.

Sydney is expected to lead much of that growth, with the median house price expected to go up by $100,000.

However, in the wake of the unprecedented coronavirus (COVID-19) pandemic, house prices could now fall by as much as 20% according to investment bank UBS.

In the wake of the most recent rate cut from the Reserve Bank, interest rates on mortgages are at record lows. At loans.com.au we’ve recently cut our variable-rate to a super low 2.63% p.a. (2.65% p.a. comparison rate) so it’s a good time to start looking.

To work out how low your repayments could be with our new low-interest rate, use our home loan calculator. If you’re ready to take out a home loan with us, fill out our pre-qualification form below:

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