First Home Buyers Keep Australia's Property Market Afloat
Australia’s property market has been maintaining its rhythm better than commentators had expected, and this can be greatly attributed to the first home buyer market who is keeping the industry afloat.
Given the Federal Government’s incentives, in efforts to rebuild the nation’s economy, Australians have seen deposits as low as 5% since it was first introduced at the end of 2019. This Low Deposit Scheme has assisted almost 20,000 first home buyers purchase a home this year, with an additional 10,000 on offer to support purchases of a new home until 30 June 2021.
This extension on the Low Deposit Scheme is also introducing Australians to newly increased price caps, with Sydney caps rising from $700,000 to $950,000, while the regional towns are rising from $450,000 to $600,000. This extension will open the doors a larger group of home buyers.
Data collated has shown that the scheme has already supported up to one in eight of all first home buyers with purchases this year, three quarters of which are young Australians aged between 18-34 years old. This extension, however, will open up the door to a larger group of first home buyers,
While there has been a noticeable shift toward searches and piqued interest in regional markets, a majority of first home buyers are still purchasing their first home in major cities, while only 38% of buyers were found in regional areas.