Savvy first home buyers are seeking suburbs just outside of the CBD, despite rising house prices, such as Surry Hills in Sydney and Southbank in Melbourne.
Despite the median house prices in Surry Hills sitting at $1.83 million for a house and $921,000 for an apartment, according to statistics released by realestate.com.au. Surry Hills and Darlinghurst grew in popularity with First Home Buyers.
And in Melbourne suburbs such as Richmond with a median house price of $1.3million but only $603,500 for an apartment, and Southbank’s apartments which sit at an average of $570,000, were one of the main reasons why First Home Buyers are flocking to these suburbs.
While the outer metro suburbs are in the most demand, first home buyers are eyeing up inner-city apartments where the price growth has been softer and more subdued, according to NAB.
It comes after researched has showed that thousands of investors are planning to off-load apartments in Sydney ad Melbourne’s CBD in the coming months as unit values also take a nosedive in capital cities.
NAB Executive of Home Ownership, Andy Kerr, said that “the level of first homebuyer activity has been like nothing we’ve seen in a generation.”
“Record low interest rates and Government incentives continue to support demand and it’s been great to hear stories of some customers purchasing their first home earlier than expected. However, we also recognize rising house prices are creating a challenge for some Australians as supply levels remain below average.”
This means that when it comes to growth, you can expect the Apartment/Unit market to move a little slower compared to a standalone home, however, if the research is correct, then entering the property market with an undervalued apartment or unit in or near the CBD, will always be a great long-term investment if you hold onto it in the long run.