First-time buyers are the best placed to take advantage of the property market downturn caused by COVID-19, according to industry experts.
Queenslanders are taking up the challenge, with coronavirus failing to deter them from their house hunt. Figures from the property website Realestate.com.au show that first-time buyer inquiries were up 23 per cent across the state between January and March, the height of the pandemic, compared with the same period last year. Over the past 12 months to March Queensland and the ACT were the only states to register rises in the double digits, with
138 Bennetts Road, Norman Park, attracted 38 viewings over the Easter weeked, 36 of which were by first-home buyers
Queensland recording a 12 per cent surge and the ACT 56 per cent.
The research also revealed the top Brisbane suburbs where first-time buyers were looking for a home. Newer suburbs such as Forest Lake, Springfield Lakes and North Lakes were high up in the mix for houses, among more established areas such as Kedron, Shailer Park and Oxley.
For those looking for apartments, inner-city suburbs such as Kangaroo Point, Toowong and Taringa ruled, with Brisbane City coming out top.
Industry experts say a dip in house prices coupled with rock-bottom interest rates, the government’s 5 per cent deposit scheme and reduced competition from investors had put those looking to enter the market for the first time in a strong buying position.
Nerida Conisbee, the chief economist at REA, said that in a market where most buyers had dropped off it was surprising that first-time buyers remained active.
You get more bang for your buck in Griffin, the top suburb for first-homebuyers seeking a house. This house at 1060 Dohles Rocks Road is on a flat 607m2 waterfront block with a 12m x 7m shed.
“These buyers don’t like a fast-moving market. They tend to back off property in these climates because they are cautious.” she said.
She said the government’s First Home Loan Deposit Scheme was helping to keep this group active. The scheme, which kicked off in January, enables first-time buyers to purchase a home with just a 5 per cent deposit, which is backed by the National Housing Finance and Investment Corporation. So far 10,000 places have been made available, with a further 10,000 to be released in July.