Surge in first home action

Interest from Surfers to Pimpama

TOO much time cooped up with parents, in-laws and housemates during the COVID-19 pandemic is partly responsible for a major surge in first-home buyer activity.

A Westpac report shows the number of first-home buyers looking to get a foot on the property ladder has doubled since the pandemic’s start, with a greater desire for space and stability driving more Australians to ditch housemates for home ownership.

Not wanting to pay rent was a key driver for 54 per cent of first-home buyers, followed by a desire for more stability (39 per cent) and financial security (37 per cent) after the uncertainty brought about by COVID-19.

Sharing more time under one roof with housemates, including family members, motivated seven in 10 (69 per cent) people to buy their own digs.

“More time at home has made us reflect on how and where we want to live in the future,” said Westpac managing director of mortgages Anthony Hughes. “Our research shows young Australians are now seeking the independence that comes with owning a home, which has been amplified by the fact they’ve had to spend this time cooped up with housemates or parents.

“Many are taking stock of their finances for the first time as well. In a low interest rate environment, for example, the cost of rent in some instances is now more aligned with estimated home loan repayments. So the prospect of buying a home no longer feels like such a pipe dream.”

Almost half (48 per cent) of Australians believe that

COVID-19 has made them reconsider the type of suburb or area they would like to live in – this increased to 60 per cent for younger age groups.

On the Gold Coast, REA data reveals the top 10 suburbs where first-home buyers are looking to put down roots, with affordable lifestyle suburbs leading the list.

Surfers Paradise is the suburb of choice for first-home buyers looking for a unit or apartment, then Southport, Palm Beach and Robina.

When it comes to houses, Pimpama tops the list for firsthome buyers with Coomera, Helensvale, Oxenford and Ormeau also in the top 10.

REA chief economist Nerida Conisbee said first-home buyer search activity had accelerated since COVID-19, fuelled by federal and state government incentives.

“HomeBuilder switched a lot of people who were looking at units to houses, and as a result, we saw a lot of firsthome buyers looking at new home locations,” she said. “It’s definitely having a big impact on the new home sector and house and land.”