First home buyers surging back to the market
Stamp duty concessions have continued to entice first home buyers into the market.
New analysis from CoreLogic has found stamp duty concessions in Victoria and New South Wales appear to be driving first home buyer demand in the states. Australian Bureau of Statistics (ABS) figures show there were 10,227 first home buyer housing finance commitments in August 2017, representing 17.2% of all owner occupied housing finance commitments. The result was the greatest proportion of first home buyer participation since July 2013 and the highest number of first home buyers since December 2009.
CoreLogic analyst Cameron Kusher said much of the increase was driven by first home buyer participation in NSW and Victoria. He said there had been a notable surge in first home buyer activity in these states since the introduction of stamp duty concessions from 1 July.
“Between June and August, the number of owner-occupier first home buyer housing finance commitments has increased by 59% in NSW and 34% in Victoria. This data highlights that stamp duty is one of the key barriers for first home buyers wanting to participate in the housing market, at least in NSW and Victoria,” Kusher said.
First home buyers in New South Wales accounted for 12.9% of the owner-occupier market in August, which was the highest proportion since October 2012. The number of first home buyers in the state was at its highest since January 2012.
The surge in first home buyers was even more marked in Victoria, where first-time buyers accounted for 18.3% of all owner-occupiers, the highest proportion since August 2013. The number of first home buyers was at its highest since December 2009.