- A new report has revealed the most affordable suburbs in Australia’s capital cities.
- The report from property intelligence platform Archistar found that first homebuyer affordability has improved to become the best on record.
- The most affordable state in Australia is the Northern Territory, while New South Wales remains the most expensive.
- Visit Business Insider Australia’s homepage for more stories.
A new report has revealed the most affordable suburbs in Australia’s capital cities.
Research from property intelligence platform Archistar has found an improvement in first home buyer affordability to become the best on record.
The company’s National First Home Buyer Affordability Index found home buyer affordability dropped to 72.57 during the September quarter of 2020 – the lowest point since the record began in 2007.
The Index measures the average first home buyer loan weekly repayments as a proportion of average weekly earnings each quarter, using data from the Australian Bureau of Statistics (ABS). The lower the index, the more affordable the first home buyer loan.
Breaking the findings down by state, New South Wales remained the most expensive for those looking to buy their first home, while the Northern Territory was the most affordable.
“The improvement in first home buyer loan affordability over the September quarter is reflected in the recent surge in first home buyer activity,” Dr Andrew Wilson, Chief Economist at Archistar said in a statement.
“The ABS reports that national loans for this group increased by 34% over the first 10 months of this year compared to the same period last year. Numerous state and federal government incentives are also activating first home buyers.”
“Lower prices, lower interest rates and higher incomes have all acted to improve affordability to record levels for Australian first home buyers over the September quarter,” Wilson added. “However, with rates set to remain steady for years together with ongoing weak incomes growth and higher house prices, the recent sharp improvements in affordability are likely to be short-lived.”
Archistar also revealed the most affordable suburbs in Sydney, Melbourne, Brisbane, Adelaide and Perth, highlighting the median asking prices for both homes and units.
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