Where would you buy if you were a first home buyer looking for a house?

The other day someone asked me if I was a first home buyer where would I choose to buy?  It’s a tough question, particularly if I was looking to buy my first home in Sydney where the median house price is now just over $700,000.  Casting my mind back to 2002 when my wife and I bought our first home in Brisbane, here are the key things we were looking for:

  • Top of our list was something that we could afford – we had a stretch budget of about $250,000.
  • The second priority was to buy a home we thought would appreciate in value – we would eventually want to upgrade and viewed our first home as a stepping stone to something ‘more comfortable’.
  • Third was that we wanted a detached home with a backyard.
  • There were a few other considerations: we wanted a location that wouldn’t take too long to get into the city (where we both worked) by public transport, ideally the home would have at least three bedrooms; I wanted a man cave/shed while my wife was keen   for some entertaining space such as a back deck.

Here’s the house we settled on – an original  and unrenovated post-war home with three bedrooms in Moorooka on 607sqm of land.  Moorooka is about 10km south of the Brisbane CBD and at the time wasn’t high on the desirability scale for most buyers.  The kitchen was an original and in typical 50’s style. We did a lot of our own renovations over time like ripping up the carpet to expose the wooden floors, painting and some basic landscaping.  While the home was rough around the edges and not all that comfortable, it was well connected to transport (option of train or bus), had decent arterial road connections (M1 Motorway / Ipswich Road / Beaudesert Road), I had a shed downstairs that was almost high enough to walk under without stooping and we could entertain in the back yard (as long as it didn’t rain).  We paid $245,000 and sold the property for $350,000 four years later.

House

It’s hard to draw parallels between market conditions back in 2002 and now; the median house price at Moorooka has risen to $500,000 which is more than double what it was back in 2002.  I think if I was a first home buyer today I would probably have fairly similar expectations – stick to a budget that doesn’t  stretch the  finances and entertainment fund too much, look for an area that is likely to appreciate in value – ideally a detached home (but I appreciate that is becoming more difficult due to pricing in many locations).  I think I would be we willing to sacrifice a bedroom, opt for a smaller backyard and lose the man cave if that meant buying closer to where I worked and played.

Interestingly, a survey recently commissioned by Aussie and undertaken by RP Data showed the top five considerations for first home buyers were:

Rank      Factor

1             Affordability

2             Number of bedrooms

3             Garage / off street parking

4             Capital Growth

5             Proximity to – Public transport

So… based on the average first home buyer loan size across each state and allowing for a 20% deposit, here are my personal picks for buying a detached home as a first home buyer.  Please note that I am not providing any advice here.  Readers should undertake their own research and determine the suburbs that are best for them based on their own due diligence, budgets and preferences.

At the end of my blog I have provided tables that outline the full list of suburbs that suit the selection criteria (ie a median house value that is equal to or less than the average first home buyer loan size plus 20%).  I would be very interested in reader views on where they would be seeking to buy based on these suburbs or areas outside of the list.

Sydney:

Being a first home buyer in Sydney is tough.  The median house price is the highest of any capital city at $705,000; for this reason many first home buyers are either blocked from the market financially or they choose more affordable locations located far from the city centre which are often not as well serviced by transport options and other necessities such as schools, health care, retail and social options.  Alternatively, more first home buyers are sacrificing the back yard and opting for higher density living such as a town home or apartment.  Personally, I think Sydney is the only city where I would be seeking an apartment over a house so I could buy closer to the city and social precincts (but I have stuck to the theme and selected a suburb for detached housing)

The average first home buyer loan size in NSW, based on the September housing finance data from the ABS was $298,500.  Adding a 20% deposit we can assume the typical first home buyer in NSW is spending around $360,000 on their first dwelling.  There are 71 suburbs across the Greater Sydney metro area with a median house value of $360,000 or less.  Most detached houses with a median value at or under $360,000 are located a long distance from the city, mostly around the Central Coast, Campbelltown and Blacktown.

My pick for a house within this price range is the suburb of Cambridge Park, located in the Penrith council region.  The suburb is located about 45km from the Sydney CBD and is reasonably well serviced by transport options; the Western Motorway is in close proximity, as is the Kingswood and Penrith train station.  The median house value at Cambridge Park is $350,570 and last year there were 101 house sales of which 85% sold under $400,000.  The average block size at Cambridge Park is 696sqm, so most detached homes have large yards.

Melbourne:

Melbourne dwelling values have risen by almost 55% since the beginning of 2007 which has created some affordability barriers for first home buyers in the local market place. The median house price for Melbourne is now $595,000 which is still a lot less than Sydney’s ($705,000) but much higher than it was before the three cycles of growth the market has been through over the past six years.

The average first home buyer loan size in Victoria, based on the September housing finance data from the ABS was $280,300.  Adding a 20% deposit we can assume the typical first home buyer in Vic is spending around $340,000 on their first dwelling.  There are 39 suburbs across the Melbourne metropolitan area where the median house value is less than or equal to $340,000.  Most detached houses with a median value at or under $340,000 are located around the city fringe in the council regions of Casey, Melton, Brimbank and Hume.

My pick for a suburb to buy a first house within this price range is Hoppers Crossing which is located in the Wyndham council region about 23km west of the Melbourne CBD.  The suburb is serviced by its own train station and has efficient access to the Princes Freeway.  The median house value at Hoppers Crossing $334,600 and last year there were 492 houses sold, of which 88% were priced under $400,000.  The average land area at Hoppers Crossing is 625sqm, highlighting that this suburb typically shows large block sizes for detached housing.

 

Brisbane:

Brisbane’s housing market has been much more sedate when it comes to capital growth over the past five years. From January 2009 through to October 2013 Brisbane dwelling values have risen by just 1% compared with a 36% rise in Melbourne values and a 35% rise in Sydney values.  The lack of capital gains across the Brisbane market has provided a substantial improvement in housing affordability compared with the other major capital cities.  In fact, the median house price for Brisbane, at $453,000, is 36% lower than Sydney’s median house price and 24% lower than Melbourne’s.  For first home buyers this means housing options closer to the city tend to be more diverse and available.

The average first home buyer loan size in Qld, based on the September housing finance data from the ABS was $273,500.  Adding a 20% deposit we can assume the typical first home buyer in Qld is spending around $330,000 on their first dwelling.  There are 79 suburbs across Greater Brisbane with a median house value equal to or lower than $340,000, with most of these suburbs located around the city fringe in the council regions of Ipswich, Logan and Moreton Bay.

My pick for a first home buyers suburb within this price range for houses is Strathpine which is located within the Moreton Bay council region about 19km north of the Brisbane CBD.  The suburb of Strathpine is serviced by a train station and has efficient access to the Gateway Motorway, Bruce Highway and Gympie arterial road.  The median house value at Strathpine is about $333,000 and over the past year there have been 127 houses sold of which 91% had a sale price of $400,000 or less.   The average land area is 698sqm suggesting most houses are positioned on a large block of land.

 

Adelaide:

Adelaide’s housing market has been relatively quiet over the current growth cycle with dwelling values rising by just 1.9% over the twelve months to October 2013.  Since the beginning of 2009 Adelaide dwelling values have increased by 27% compared with 38% in Sydney, 54% in Melbourne, 21% in Brisbane and 8.5% in Perth.  Adelaide is the most affordable mainland capital city with a median house price of $390,000.  Such an affordable market potentially provides first home buyers with an easier entry point to the housing market and more diversity in their options.

The average first home buyer loan size in SA, based on the September housing finance data from the ABS was $229,900.  Adding a 20% deposit we can assume the typical first home buyer in SA is spending around $276,000 on their first dwelling.  There are 36 suburbs across Greater Adelaide with a median house value equal to or lower than $276,000, with most of these suburbs located to the north of Adelaide in the Playford and Salisbury council regions.

My pick for a first home buyer seeking a house in Adelaide would be O’Sullivan Beach, located in the Onkaparinga council region about 25km south of the Adelaide CBD.  The suburb used to be one to be avoided due to the oil refinery, however the refinery is long gone and there is a large amount of capital works underway in the Onkaparinga area including an extension of the railway line and upgrade of the expressway linking to Adelaide which will substantially boost accessibility to the area.  The median house value at O’Sullivan Beach is $248,450 and there have been 35 house sales over the past 12 months with 89% of these sales under $400,000.  Block sizes are large, averaging 672sqm.

 

Perth:

Perth’s housing market has had a strong run in values through early 2013 however the market is now slowing down.  In fact Perth values fell by 0.6% over the three months ending October 2013 but are 6.9% higher over the year.  The longer term growth rate has been quite sedate in Perth with dwelling values rising by 8.5% since the beginning of 2009.  Over the same period Melbourne values rose 54%, Sydney values were 38% higher and Brisbane values were 21% higher.  With a lower rate of growth over the past five or so years, the relative affordability of Perth houses has improved compared with Sydney and Melbourne.  With a median house price of $508,000, Perth houses are on average about 28% lower than Sydney’s and 15% lower than Melbourne’s

The average first home buyer loan size in WA, based on the September housing finance data from the ABS was $315,300.  Adding a 20% deposit we can assume the typical first home buyer in WA is spending around $380,000 on their first dwelling.  There are 29 suburbs across Greater Perth with a median house value equal to or lower than $380,000, with most of these suburbs located in the council regions of Swan, Armadale and Kwinana.

My pick for a first home buyer seeking a detached house in Perth is Lockridge, located in the Swan council region.  Situated just 11.6km from the Perth CBD, Lockridge is the most affordable suburb within 12km of the Perth CBD and is strategically located with relatively efficient road access via the Tonkin Highway and Guildford Road and the Great Eastern Highway.  Additionally, Guildford train station is close by for public transport.  The suburb’s close position to the city and transport is likely to see housing stock improve over the coming years as more buyers looking for affordable properties that are well serviced choose to live in this area.  The median house value at Lockridge is $353,700 and there have been 59 house sales over the past twelve months, 78% of which were sold at a price under $400,000.

 

TABLES:  Suburbs with a median house value which is equal to or lower than the typical first home buyer loan amount (plus 20% deposit)

Sydney suburbs with a median house value of $360,000 or less

Suburb LGA Distance from CBD Median Value Number Sold % sales under $400k
AMBARVALE Campbelltown 45.7 $338,023 67 88.1%
BERKELEY VALE Wyong 62.1 $341,748 173 78.0%
BIDWILL Blacktown 38.2 $277,618 32 100.0%
BLACKETT Blacktown 38.3 $266,549 46 100.0%
BLACKHEATH Blue Mountains 86.7 $343,757 151 62.3%
BLUE HAVEN Wyong 77.0 $307,670 143 94.4%
BRADBURY Campbelltown 43.6 $347,157 158 84.8%
BUDGEWOI Wyong 76.8 $304,240 76 82.9%
BUFF POINT Wyong 76.5 $313,828 81 90.1%
BULLABURRA Blue Mountains 73.9 $314,576 27 66.7%
BUSBY Liverpool 30.4 $355,138 54 92.6%
BUXTON Wollondilly 75.6 $335,022 47 78.7%
CAMBRIDGE PARK Penrith 45.7 $350,570 101 85.1%
CAMPBELLTOWN Campbelltown 43.3 $339,664 155 73.5%
CANTON BEACH Wyong 71.7 $279,385 19 94.7%
CARTWRIGHT Liverpool 30.2 $336,181 34 94.1%
CHAIN VALLEY BAY Wyong 84.4 $331,983 31 83.9%
CHARMHAVEN Wyong 75.2 $281,410 44 93.2%
COLYTON Penrith 38.5 $348,272 123 85.4%
DHARRUK Blacktown 37.9 $310,164 43 95.3%
EAGLE VALE Campbelltown 41.4 $334,148 71 77.5%
EMERTON Blacktown 39.0 $268,439 32 100.0%
ESCHOL PARK Campbelltown 41.8 $332,032 49 98.0%
GOROKAN Wyong 72.8 $275,644 189 91.0%
GWANDALAN Wyong 87.2 $297,245 89 71.9%
HALEKULANI Wyong 78.1 $304,863 51 92.2%
HAZELBROOK Blue Mountains 70.5 $343,221 100 76.0%
HEBERSHAM Blacktown 37.3 $306,377 80 98.8%
HECKENBERG Liverpool 29.4 $357,687 35 74.3%
KANWAL Wyong 71.2 $310,148 53 92.5%
KATOOMBA Blue Mountains 84.7 $334,336 210 74.3%
KILLARNEY VALE Wyong 59.6 $341,805 148 79.7%
LAKE HAVEN Wyong 73.6 $312,268 72 90.3%
LAKE MUNMORAH Wyong 81.4 $324,575 107 81.3%
LAWSON Blue Mountains 72.8 $339,161 52 71.2%
LETHBRIDGE PARK Blacktown 39.6 $262,236 73 98.6%
LEUMEAH Campbelltown 40.1 $350,115 113 79.6%
MACQUARIE FIELDS Campbelltown 32.4 $355,842 130 84.6%
MANNERING PARK Wyong 83.2 $285,851 56 83.9%
MEDLOW BATH Blue Mountains 86.8 $321,948 23 82.6%
MILLER Liverpool 30.7 $347,712 28 89.3%
MINTO Campbelltown 38.0 $336,234 126 81.7%
MOUNT VICTORIA Blue Mountains 94.4 $310,480 32 87.5%
NARARA Gosford 52.9 $351,153 119 70.6%
NIAGARA PARK Gosford 54.9 $333,785 40 90.0%
NORAVILLE Wyong 73.0 $316,379 76 82.9%
NORTH GOSFORD Gosford 50.8 $331,417 48 85.4%
NORTH ST MARYS Penrith 40.3 $310,416 67 95.5%
ROSEMEADOW Campbelltown 47.0 $329,540 97 83.5%
SAN REMO Wyong 77.4 $268,725 100 100.0%
SHALVEY Blacktown 39.5 $290,787 55 94.5%
SPENCER Gosford 46.6 $235,878 17 100.0%
SPRINGFIELD Gosford 50.3 $354,148 79 54.4%
ST HELENS PARK Campbelltown 45.3 $346,425 99 76.8%
ST MARYS Penrith 41.7 $351,880 151 70.9%
SUMMERLAND POINT Wyong 86.4 $318,573 71 76.1%
TACOMA Wyong 67.6 $355,765 12 75.0%
TAHMOOR Wollondilly 70.0 $340,242 104 64.4%
TOUKLEY Wyong 73.7 $306,687 109 78.9%
TREGEAR Blacktown 40.0 $254,283 42 100.0%
TUGGERAH Wyong 64.6 $320,471 17 94.1%
TUGGERAWONG Wyong 69.3 $309,341 22 81.8%
VINEYARD Hawkesbury 40.5 $187,058 11 27.3%
WARRAGAMBA Wollondilly 56.0 $296,459 22 95.5%
WATANOBBI Wyong 68.7 $286,550 86 94.2%
WHALAN Blacktown 38.7 $267,535 86 98.8%
WILLMOT Blacktown 40.9 $250,875 45 100.0%
WYOMING Gosford 52.4 $337,104 172 88.4%
WYONG Wyong 67.7 $324,348 79 75.9%
WYONGAH Wyong 70.3 $314,537 28 92.9%
YANDERRA Wollondilly 77.6 $321,750 15 93.3%

 

Melbourne suburbs with a median house value of $340,000 or less

Suburb LGA Distance from CBD Median Value Number Sold % sales under $400k
ALBANVALE Brimbank 18.4 $300,276 66 95.5%
ARDEER Brimbank 14.3 $328,198 42 95.2%
BADGER CREEK Yarra Ranges 53.4 $316,733 22 100.0%
BAXTER Mornington Peninsula 45.7 $310,250 39 94.9%
BROADMEADOWS Hume 15.5 $314,371 127 93.7%
CARRUM DOWNS Frankston 36.6 $316,872 343 94.2%
COOLAROO Hume 18.3 $273,953 32 100.0%
CRANBOURNE Casey 42.3 $301,431 267 86.1%
CRANBOURNE NORTH Casey 41.6 $330,417 313 71.6%
CRANBOURNE WEST Casey 40.7 $312,681 202 82.2%
CRIB POINT Mornington Peninsula 63.8 $328,106 54 87.0%
DALLAS Hume 16.3 $272,798 67 97.0%
DEER PARK Brimbank 17.0 $333,900 222 83.8%
DIGGERS REST Melton 31.9 $293,165 21 90.5%
DOVETON Casey 31.0 $296,635 129 96.1%
EUMEMMERRING Casey 32.2 $321,447 17 94.1%
FRANKSTON NORTH Frankston 38.8 $259,090 101 99.0%
HAMPTON PARK Casey 37.0 $317,883 296 93.9%
HASTINGS Mornington Peninsula 57.1 $330,628 122 74.6%
HOPPERS CROSSING Wyndham 23.3 $334,637 492 87.8%
JACANA Hume 15.0 $307,054 24 95.8%
JUNCTION VILLAGE Casey 46.0 $303,794 16 93.8%
KINGS PARK Brimbank 18.7 $314,811 82 98.8%
KOO WEE RUP Cardinia 62.6 $314,965 39 84.6%
KURUNJANG Melton 36.5 $295,150 127 96.1%
LANG LANG Cardinia 76.2 $305,872 19 94.7%
LAVERTON Wyndham 17.3 $310,746 72 95.8%
MEADOW HEIGHTS Hume 18.8 $304,873 115 92.2%
MELTON Melton 34.6 $255,962 114 96.5%
MELTON SOUTH Melton 34.8 $257,471 148 97.3%
MELTON WEST Melton 40.2 $307,087 263 88.6%
MILLGROVE Yarra Ranges 61.2 $241,452 41 100.0%
ROCKBANK Melton 27.4 $291,074 10 100.0%
ST ALBANS Brimbank 15.4 $338,663 334 87.1%
WARBURTON Yarra Ranges 66.6 $317,048 52 90.4%
WARNEET Casey 55.6 $335,079 12 100.0%
WERRIBEE Wyndham 28.9 $313,498 492 82.1%
WOORI YALLOCK Yarra Ranges 51.5 $325,934 55 92.7%
WYNDHAM VALE Wyndham 31.5 $305,842 351 93.7%

 

Brisbane suburbs with a median house value of $330,000 or less

Suburb LGA Distance from CBD Median Value Number Sold % sales under $400k
ACACIA RIDGE Brisbane 12.8 $311,024 85 91.8%
BASIN POCKET Ipswich 29.3 $229,697 16 100.0%
BEACHMERE Moreton Bay 39.6 $315,598 39 79.5%
BEENLEIGH Logan 31.6 $283,773 76 97.4%
BELLARA Moreton Bay 46.9 $305,679 52 86.5%
BELLBIRD PARK Ipswich 24.1 $301,586 87 74.7%
BELLMERE Moreton Bay 45.7 $313,671 73 79.5%
BETHANIA Logan 27.1 $273,587 46 91.3%
BLACKSTONE Ipswich 28.2 $268,620 15 93.3%
BOOVAL Ipswich 28.2 $266,741 37 97.3%
BORONIA HEIGHTS Logan 24.2 $302,893 112 95.5%
BRASSALL Ipswich 31.8 $288,194 132 84.8%
BROWNS PLAINS Logan 21.7 $294,457 79 93.7%
BUNDAMBA Ipswich 26.2 $254,016 79 100.0%
CABOOLTURE Moreton Bay 45.5 $270,524 276 77.9%
CABOOLTURE SOUTH Moreton Bay 42.7 $257,865 85 96.5%
CAMIRA Ipswich 21.1 $335,268 93 80.6%
CHURCHILL Ipswich 32.8 $254,568 26 84.6%
COALFALLS Ipswich 31.9 $283,849 15 100.0%
COLLINGWOOD PARK Ipswich 23.9 $282,252 107 91.6%
COOCHIEMUDLO ISLAND Redland 31.6 $277,687 22 95.5%
CRESTMEAD Logan 24.4 $268,773 143 99.3%
DARRA Brisbane 13.1 $332,396 42 85.7%
DECEPTION BAY Moreton Bay 32.2 $286,382 265 89.8%
DINMORE Ipswich 23.7 $219,381 12 100.0%
DONNYBROOK Moreton Bay 52.4 $308,570 18 72.2%
DURACK Brisbane 13.9 $321,094 64 82.8%
EAGLEBY Logan 32.0 $247,595 98 91.8%
EAST IPSWICH Ipswich 29.1 $254,703 45 88.9%
EASTERN HEIGHTS Ipswich 30.4 $259,047 68 88.2%
EBBW VALE Ipswich 25.1 $224,392 16 100.0%
EDENS LANDING Logan 29.3 $323,143 81 88.9%
FLINDERS VIEW Ipswich 31.7 $319,243 80 71.3%
GAILES Ipswich 19.7 $225,952 22 100.0%
GOODNA Ipswich 20.1 $251,557 74 98.6%
HILLCREST Logan 22.0 $312,926 83 91.6%
HOLMVIEW Logan #N/A $291,303 26 65.4%
INALA Brisbane 14.4 $282,549 138 94.9%
IPSWICH Ipswich 31.4 $308,874 53 81.1%
KALLANGUR Moreton Bay 24.7 $317,563 294 93.5%
KINGSTON Logan 22.7 $250,408 113 98.2%
LAMB ISLAND Redland 38.7 $197,495 11 100.0%
LAWNTON Moreton Bay 21.5 $324,917 94 63.8%
LEICHHARDT Ipswich 33.6 $215,920 48 100.0%
LOGAN CENTRAL Logan 20.8 $245,532 53 98.1%
LOGANLEA Logan 24.9 $270,646 69 84.1%
MACLEAY ISLAND Redland 36.8 $228,236 58 94.8%
MARBURG Ipswich 44.5 $291,053 19 89.5%
MARSDEN Logan 23.6 $281,066 141 92.9%
MORAYFIELD Moreton Bay 38.3 $313,972 252 73.4%
MOUNT WARREN PARK Logan 33.8 $329,780 66 86.4%
NEWTOWN Ipswich 29.6 $303,529 27 85.2%
NORTH BOOVAL Ipswich 27.3 $238,471 26 96.2%
NORTH IPSWICH Ipswich 29.7 $258,252 78 97.4%
ONE MILE Ipswich 33.9 $224,769 34 97.1%
PETRIE Moreton Bay 23.7 $331,641 153 71.2%
RACEVIEW Ipswich 30.9 $278,092 146 96.6%
REDBANK Ipswich 21.2 $259,070 19 100.0%
REDBANK PLAINS Ipswich 26.8 $257,658 189 97.4%
REDCLIFFE Moreton Bay 28.3 $338,836 122 68.9%
RIVERVIEW Ipswich 22.4 $220,579 18 100.0%
ROCKLEA Brisbane 9.2 $298,796 39 87.2%
ROSEWOOD Ipswich 46.3 $252,687 42 92.9%
RUSSELL ISLAND Redland 42.2 $202,372 58 96.6%
SADLIERS CROSSING Ipswich 32.1 $292,475 21 85.7%
SILKSTONE Ipswich 28.9 $257,321 56 98.2%
SLACKS CREEK Logan 21.1 $278,222 132 90.2%
STRATHPINE Moreton Bay 19.2 $332,556 127 91.3%
TIVOLI Ipswich 28.1 $251,991 26 100.0%
TOORBUL Moreton Bay 48.5 $312,173 18 88.9%
WATERFORD Logan 28.7 $323,370 56 83.9%
WATERFORD WEST Logan 26.4 $292,118 64 92.2%
WILLOWBANK Ipswich 42.1 $286,891 14 78.6%
WOODEND Ipswich 30.9 $298,382 24 95.8%
WOODFORD Moreton Bay 63.2 $319,701 34 82.4%
WOODRIDGE Logan 19.1 $242,138 104 100.0%
WULKURAKA Ipswich 33.7 $275,440 12 91.7%
YAMANTO Ipswich 34.6 $329,779 88 86.4%

 

Adelaide suburbs with a median house value of $276,000 or less

Suburb LGA Distance from CBD Median Value Number Sold % sales under $400k
ANDREWS FARM Playford 28.1 257839 158 98.7%
BRAHMA LODGE Salisbury 17.2 $245,920 58 98.3%
BURTON Salisbury 20.7 $267,198 78 92.3%
CHRISTIE DOWNS Onkaparinga 24.7 $241,484 94 98.9%
CRAIGMORE Playford 26.7 $264,429 164 94.5%
DAVOREN PARK Playford 26.6 $172,236 78 100.0%
ELIZABETH Playford 23.6 $206,684 18 100.0%
ELIZABETH DOWNS Playford 26.5 $187,622 81 98.8%
ELIZABETH EAST Playford 23.0 $203,437 64 100.0%
ELIZABETH GROVE Playford 21.9 $194,669 22 100.0%
ELIZABETH NORTH Playford 25.8 $173,864 36 100.0%
ELIZABETH PARK Playford 24.9 $193,210 51 100.0%
ELIZABETH SOUTH Playford 21.0 $185,391 22 100.0%
ELIZABETH VALE Playford 20.4 $212,977 52 100.0%
EVANSTON Gawler 35.9 251874 25 96.0%
EVANSTON GARDENS Gawler 34.5 245690.5 29 93.1%
HACKHAM Onkaparinga 26.1 $248,504 63 98.4%
HACKHAM WEST Onkaparinga 25.5 $232,986 61 100.0%
HUNTFIELD HEIGHTS Onkaparinga 26.9 $249,294 70 97.1%
INGLE FARM Salisbury 11.6 $271,172 136 96.3%
MORPHETT VALE Onkaparinga 22.9 $264,893 411 97.1%
MUNNO PARA Playford 30.1 209081 76 100.0%
NOARLUNGA DOWNS Onkaparinga 27.7 $253,958 70 85.7%
O’SULLIVAN BEACH Onkaparinga 25.3 248452.5 35 88.6%
PARA HILLS Salisbury 13.8 $271,015 130 98.5%
PARA HILLS WEST Salisbury 14.0 $269,928 45 97.8%
PARAFIELD GARDENS Salisbury 15.6 $267,633 195 94.9%
PARALOWIE Salisbury 18.5 $265,107 234 95.3%
SALISBURY Salisbury 18.1 $261,538 103 95.1%
SALISBURY DOWNS Salisbury 17.0 $262,741 71 100.0%
SALISBURY EAST Salisbury 17.5 $264,107 136 97.1%
SALISBURY NORTH Salisbury 20.1 $229,214 96 97.9%
SALISBURY PARK Salisbury 19.3 $260,844 30 96.7%
SMITHFIELD Playford 27.7 218620 32 100.0%
SMITHFIELD PLAINS Playford 28.4 175641 35 100.0%
WINGFIELD Port Adelaide Enfield 9.9 $232,167 11 100.0%

 

Perth suburbs with a median house value of $380,000 or less

Suburb LGA Distance from CBD Median Value Number Sold % sales under $400k
ARMADALE Armadale 26.3 $298,974 302 96.4%
BELLEVUE Swan 16.7 $370,768 48 83.3%
BROOKDALE Armadale 27.4 $300,550 60 98.3%
CALISTA Kwinana 33.2 $303,291 45 97.8%
CAMILLO (WESTFIELD) Armadale 25.0 $307,601 104 99.0%
COOLOONGUP Rockingham 38.9 $317,963 193 93.3%
GIRRAWHEEN Wanneroo 12.5 $360,426 189 84.1%
GOSNELLS Gosnells 19.6 $346,328 467 79.9%
HILLMAN Rockingham 37.7 $315,943 28 100.0%
KELMSCOTT Armadale 23.9 $360,464 261 70.1%
KOONDOOLA Wanneroo 12.4 $358,938 75 80.0%
KOONGAMIA Swan 18.1 $336,246 17 94.1%
LANGFORD Gosnells 12.7 $367,604 117 66.7%
LEDA Kwinana 35.6 $338,055 86 96.5%
LOCKRIDGE Swan 11.7 $353,664 59 78.0%
MADDINGTON Gosnells 16.2 $335,967 260 84.6%
MEDINA Kwinana 31.7 $262,717 66 100.0%
MERRIWA Wanneroo 34.8 $362,590 145 88.3%
MIDDLE SWAN Swan 18.5 $358,303 58 65.5%
MIDLAND Swan 15.7 $369,056 150 71.3%
MIDVALE Swan 17.7 $350,188 33 81.8%
ORELIA Kwinana 31.4 $316,295 94 92.6%
PARMELIA Kwinana 32.8 $305,669 152 98.0%
SEVILLE GROVE Armadale 23.7 $368,074 221 74.2%
STRATTON Swan 19.4 $353,067 90 92.2%
WAIKIKI Rockingham 41.2 $378,215 302 60.6%
WARNBRO Rockingham 43.8 $354,370 290 78.6%

About Tim Lawless

Tim heads up the RP Data research and analytics team, analysing real estate markets, demographics and economic trends across Australia

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11 Responses to Where would you buy if you were a first home buyer looking for a house?

  1. Blake November 29, 2013 at 12:06 pm #

    Central Coast, Campbelltown etc aren’t in Sydney…

  2. Dave November 29, 2013 at 1:27 pm #

    I am very confused as to why you would make the assumption that the majority of first home buyers are bringing a 20% deposit to the table?

    Is this a realistic assumption??? I do not think that it is even close to the level of deposit used by the majority of first home buyers.

    Can you explain why this assumption was used?

    Cheers
    Dave

  3. Mark November 29, 2013 at 4:09 pm #

    Hey! Why the long answer. I’d suggest anywhere overseas buyers aren’t buying.

  4. Wag November 29, 2013 at 4:14 pm #

    Maybe if everywhere was where overseas buyers were not buying, first home buyers might be in with a show.

  5. Randy Holmes November 29, 2013 at 11:40 pm #

    Hi,

    The front page of your newsletter says that Sydney median house price is $610k. Your article then says $705k. Who to believe?

    Regards,

    Randy.

  6. Stuart Smith November 30, 2013 at 8:44 am #

    Hi Tim i reckon you are right on the mark ,i believe land size and a detached house is still the Australian dream.
    Iam on my 5th house and i allways aim to purchase a house with a descent block so as not to live in your neighbours pocket.
    Tim im a carpenter with 30 years experiance in the building industry domestic and commercial,however in 2003 i had a injury leading two major back surgerys and unable to work on the tools,im aiming to get my builders liscence in 2014 and have just completed cert4 in building construction to help acheive this ambition.
    Im for see Building spec homes with the use of tradesman doing the hard work and i will be managing the build,im intrested in your veiws of what are the most desirable and profitable areas around Melbourne to acheive such a goal.
    Regards Stuart Smith

  7. Bill February 8, 2016 at 7:18 pm #

    Is there an update to this article on what the current situation is now..

    • Regina Pete June 26, 2017 at 6:58 pm #

      First time home buying is more often than not in the community to where someone was raised. The budget, family dynamics, fiscal stability and long-term plans all play a factor into this.

  8. Ian May 25, 2016 at 8:12 am #

    Hello, first time home buying often occurs as close to where they grew up, as their budget can allow them. Or that is how it used to be anyways. Now with technology and others accessibilities, moving anywhere can be easy, as long as you have the finances and resources available.

  9. Sondra August 23, 2016 at 4:55 pm #

    Never buy in OLD REYNELLA

    Worst suburb in southern area of Adelaide

    Property prices always fall here

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  1. Where Should a First Home Buyer be Looking? - September 22, 2014

    […] first home buyer where he would buy his first home if he was in the market today. The result was a great piece on the RP Data blog that provided quick analyses of every state in Australia and used his experience as a first home […]

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