What Aussie First Home Buyers Need to Know
First-time home buyers all over Australia face similar obstacles when looking for the perfect property due to the competitive housing market. However, homebuying experiences can vary significantly based on where you’re purchasing the property.
If you’re about to buy your first home, here are a few key figures you need to know from Domain’s First-Home Buyer Report 2025:
Entry property prices for each state
The easiest way for first-time homebuyers to break into the real estate market is by buying a starter home. These entry-level homes are priced more affordably because they’re typically smaller, older, and/or farther away from the CBD than homes that are priced closer to or more than the median home value.
Entry price for houses compared to the median house price by area
| Area | Entry Prices for a House | Median House Prices* | Price Difference in % |
|---|---|---|---|
| Sydney | $990,000 | $1,691,731 | ↓52.33% |
| Melbourne | $670,000 | $1,035,887 | ↓42.89% |
| Brisbane | $735,000 | $1,022,026 | ↓32.67% |
| Adelaide | $689,000 | $1,000,202 | ↓36.84% |
| Perth | $645,000 | $917,706 | ↓34.90% |
| Hobart | $580,000 | $710,077 | ↓20.16% |
| Darwin | $465,000 | $659,172 | ↓34.54% |
| Canberra | $815,000 | $1,049,067 | ↓25.11% |
*Source: Domain March 2025 House Price Report
Entry-priced homes make it more accessible for first-time buyers to own property. As you can see in the table above, the price differences are quite significant. In Sydney alone, the most expensive housing market in the country, there’s an astonishing 52.33% price difference, more than half of the median house price.
With almost all median house prices in Australia going over the million-dollar mark, it may seem impossible to find an affordable home, but because there are many entry-priced properties out there, first-time homebuyers have a chance of owning property sooner.
It is still possible to find affordable properties in capital cities; however, they may not be the perfect dream home. These entry-level homes likely won’t be within close proximity to the CBD or have the latest amenities and features, but they’re still perfectly acceptable abodes.
Entry price for units compared to the median house price by area
| Area | Entry Prices for a Unit | Median Unit Prices* | Price Difference in % |
|---|---|---|---|
| Sydney | $615,000 | $823,467 | ↓28.98% |
| Melbourne | $437,500 | $550,022 | ↓22.7% |
| Brisbane | $545,000 | $657,645 | ↓18.73% |
| Adelaide | $463,000 | $557,957 | ↓18.60% |
| Perth | $410,000 | $508,367 | ↓21.42% |
| Hobart | $415,000 | $555,609 | ↓28.97% |
| Darwin | $285,000 | $352,441 | ↓21.15% |
| Canberra | $462,000 | $531,784 | ↓14.04% |
*Source: Domain March 2025 House Price Report
The unit prices for entry-level properties are lower than the median unit prices. However, the difference in prices is not as big compared to the entry prices for houses. This could be due to the already lower price point of units.
Units are undeniably the more affordable option. However, the savings you get when you buy an entry-level unit may not be worth it, considering all the compromises you have to make. Since the difference between entry-level units and the median unit price isn’t that large, especially in some areas like Canberra, Brisbane, and Adelaide, where it’s less than 20%, it may be worthwhile to simply save a little longer to be able to afford a better property.
How fast is the path to home ownership?
Due to rising housing prices, first-time homebuyers are finding it harder and harder to break into Australia’s real estate market. But one of the major challenges first-time homebuyers face is saving up for a deposit.
The table below estimates how long it would take for a couple aged 25 to 34 with the average Australian salary to save money for a 20% deposit on an entry-priced home in each state. Although simply an approximation, it’s a useful chart that lets you get a better sense of how long it would take to accumulate the needed funds.
Time it takes for first-time homebuyers to save for an entry-priced property
| Area | Time to Save for Homes | Time to Save for Units |
|---|---|---|
| Sydney | 6 years 9 months | 4 years 4 months |
| Melbourne | 5 years 1 month | 3 years 5 months |
| Brisbane | 5 years 6 months | 4 years 2 months |
| Adelaide | 5 years 6 months | 3 years 9 months |
| Perth | 4 years 6 months | 2 years 11 months |
| Hobart | 4 years 11 months | 3 years 7 months |
| Darwin | 3 years 5 months | 2 years 1 month |
| Canberra | 5 years 7 months | 3 years 3 months |
| Australia | 4 years 10 months | 3 years 4 months |
In areas like Sydney, where prices are higher than the rest of the country, saving for a 20% home deposit could take over six years for an entry-priced house. Meanwhile, first-time homebuyers in Darwin can save for a deposit on an entry-priced house in only three years and five months, half the time it takes to save in Sydney.
As you can see, the time it takes to become a homeowner differs widely based on where you’re buying a property. The more expensive the entry-priced home is, the longer it will take to save for the deposit. If you’re looking for the quickest path to owning a home, choosing a unit or lower-cost areas like Perth, Darwin, or Hobart may be ideal.
Some lenders, like loans.com.au, allow buyers to borrow as much as 90% of the property price, meaning you don’t have to wait until you have the full 20% deposit saved up. But you may have to pay for lenders' mortgage insurance (LMI).
Government schemes to help first-time home buyers
There are plenty of government incentives out there to help first-home buyers. Using one of these federal or state-wide programs can help hasten the path to homeownership:
Family Home Guarantee – Eligible to single parent or single legal guardian of at least one dependent. Allows homebuyers to purchase a home with as little as a 2% deposit.
First Home Super Saver Scheme - Eligible first-home buyers applying for a mortgage can make voluntary contributions to their superannuation fund to help them save for a home.
First Home Owner Grant - Eligible first-time home buyers can get a one-off payment ($15,000 or the consideration paid to buy or build the house) to assist in buying or building their first home.
Home loans for first-time home buyers
The demand for low-cost properties in capital cities is incredibly competitive. If you don't want to miss out on a good property, you need to find a good home loan as soon as possible. The ideal home loan is one with low rates and useful features to help you manage home loan payments with ease.
At loans.com.au, we offer first-time homebuyers a range of mortgage options to choose from. Speak with our friendly lending specialists about your home loan needs so we can help you find the best finance solution. Call 13 10 90 or apply for a home loan today and take the first step to homeownership.
Find out in under 2 minutes if you qualify for one of our low rate home loans.
About the article
As Australia's leading online lender, loans.com.au has been helping people into their dream homes and cars for more than 10 years. Our content is written and reviewed by experienced financial experts. The information we provide is general in nature and does not take into account your personal objectives or needs. If you'd like to chat to one of our lending specialists about a home or car loan, contact us on Live Chat or by calling 13 10 90.
