First-Home buyers in Sydney, Melbourne, Hobart, Brisbane and Canberra can expect to be saving for longer to get into their first home, while those in Perth and Darwin have less time to save according to the Domain First-Home Buyers Report. Those in Adelaide face the same savings time as last year.
“Although the majority of capital cities saw the journey to homeownership become a little longer compared to the same time last year, in recent months weakening prices will eventually translate to improved affordability,” said Domain Senior Research Analyst, Dr Nicola Powell.
“Buying conditions have improved, first-home buyers appear to be taking advantage of low interest rates, retreating investor activity, reduced foreign buyer interest, the extension of the Federal Government’s first home loan deposit scheme and other state-based incentives.”
- A 20 per cent deposit for a first house in Sydney now takes an extra two months of saving compared to last year according to the report released today. With an entry level house price of $680,000 in Sydney, it takes six years and six months for a couple to save for the deposit.
“Sydney remains the most expensive of all our capital cities and, as a result, the path to purchase is the longest,“ said Domain Senior Research Analyst, Dr Nicola Powell.
- In Melbourne the time it takes to save a 20 per cent deposit for an entry-level house has also risen by two months, while saving for a first unit in the city will take an extra month compared to last year.
“Melbourne has the second largest price difference between houses and units of all the capital cities, with an entry-price gap of $175,500. First-home savers will need to spend an additional 21 months to save for an entry-house versus a unit,“ said Domain Senior Research Analyst, Dr Nicola Powell.
- In Brisbane it would take the average couple four-and-a-half years to save a house deposit, one month longer compared to last year. While two months have been cut from the unit savings time, which now sits at 3 years and 3 months.
“Those vying for the quickest hop on the property ladder will need to look towards Ipswich, Moreton Bay and Logan-Beaudesert region for the shortest saving times,“ said Domain Senior Research Analyst, Dr Nicola Powell.
- Adelaide is the only capital city to offer stable conditions for first-home buyers with the time to save for a deposit for a house or unit remaining the same as last year.
- Access to the first-home deposit scheme drops the path to purchase to 11 months for entry-houses and 9 months for entry-units.
- It would take 2 years and 5 months to save a deposit on an entry-level unit in Perth and 3 years and 5 months for a house.
“Perth is one of the more favourable capital cities for first-time buyers, having low entry-prices and some of the shortest savings times,“ said Domain Senior Research Analyst, Dr Nicola Powell.
- It now takes 3 more months to save for a deposit for an entry level house in Hobart and one more month for a unit, compared to last year.
“Entry-level price growth continues to outpace wages, hindered further by a weakening savings rate,“ said Domain Senior Research Analyst, Dr Nicola Powell.
- Canberra has recorded the biggest time increase for a couple to save for a deposit for a house, with saving time increasing by 4 months compared to last year.
- There has not however been an increase in time to save for an entry level unit.
- First-home buyers in Darwin benefit from the lowest entry-prices and quickest deposit saving journey out of all the capital cities. It would take 3 years and 1 month to save for the recommended 20 per cent entry-house deposit and 1 year and 8 months for an entry-unit.
About the Domain First Home Buyers Report
Domain’s First Home Buyers Report identifies the cities and areas that offer the lowest entry-price and quickest path to purchase across our capital cities. It shows the amount of time required to save a 20 per cent deposit for an entry level house and unit for a couple aged between 25-34 years old on an average income in each capital city.