First home buyers opt to live in Macarthur's newer suburbs

First home buyers Ishan Joshi and Pragati Sharma.
First home buyers Ishan Joshi and Pragati Sharma.

There was a time where first home buyers would buy an old, fixer-upper in existing suburbs.

But nowadays prospective buyers are opting to buy or build a brand new home in growing towns.

Volatility surrounding the share market at present has also pushed buyers into looking at property as an investment safe haven.

Professionals Real Estate Narellan and District director Steve Diggins said buyer confidence was continuing at strong levels in the south west.

"First home buyers are leading the charge followed by investors, up-sizers and down-sizers," he said.

"Sydney first home buyers have been quick to take up the federal government's First Home Loan Deposit Scheme which was launched in January, enabling them to purchase with a five per cent deposit.

"The most attractive locations for purchasers are Gledswood Hills, Gregory Hills, Oran Park and Spring Farm."

Australian Bureau of Statistics (Lending Indicators Report: released February 2020) figures show that first home buyer purchasing levels are back to their highest since 2012.

Stamp duty exemptions and concessions for first home buyers for properties up to $650,000 and $850,000 respectively, were also up more than 25 per cent.

"Factors that have contributed include a general lack of established product, low interest rates, affordability of current housing stock, easing of lending and low media attention," Mr Diggins said.

"Buyers and sellers now have the confidence to move, obtain a good sale price and pay a fair purchase price.

"House hunters are generally seeking newer freestanding three or four bed homes."

Sekisui House sales and marketing manager Craig Barnes said first home buyers were a key contributor to an uplift in enquiries and sales at The Hermitage, Gledswood Hills.

"Fluctuating share market conditions will generally create opportunities within the property industry," he said.

"On the back of a sales surge in the final quarter of 2019, we have continued to deliver encouraging numbers into 2020, which is clear evidence that buyer confidence has returned to the market.

"We have experienced a considerable uplift in sales at The Hermitage over the past six months when compared to the beginning of 2019.

"This has in part been driven by an upsurge in savvy first home buyers seeking to acquire high-end property within exclusive masterplanned communities."

Mr Barnes said the market was beginning to witness a distinct shift in the needs and wants of first home buyers, which was not necessarily being driven by price.

"Typically, our core market at The Hermitage is second home buyers (upgraders and down-sizers) due to the exclusive nature of the masterplan," he said.

"First home buyers have doubled over the past quarter when compared to the same period last year, underpinning the strength of the market within growth corridor suburbs such as Gledswood Hills.

"In addition, The Hermitage has witnessed a 64 per cent uplift in sales activity over the last four months when compared to the four months prior."

First home buyers Ishan Joshi and Pragati Sharma said they had looked at several masterplanned communities in the south west before visiting The Hermitage.

"It was unlike anything else in the area - the green vibe and beautiful surroundings were captivating," Mr Joshi said.

"We were initially looking for land and then decided on a four-bedroom executive Shawood home. My parents visit annually and I know they will enjoy the stunning green outdoor environment too."

Oran Park Town marketing manager Jon Gray said the growing suburb was also proving popular among first-home buyers.

"In the last half of 2019 through to this year, we have watched sales steadily increasing," he said.

"We have a lot of young couples who are moving out of their parents house from all over Sydney including the north west and the northern beaches.

"Out there they would struggle to get a one bedroom apartment for $650,000 but out here they can get a nice family home - or even get a house and land package for the same price," he said.

Mr Gray said first-home buyers were recognising the financial benefit of moving to a growing suburb.

"The can see the benefits of growth happening across the region and their homes will increase in value over time," he said.

"The future aerotropolis and Western Sydney Airport are also big drawcards because of the job growth that will occur."