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Queensland and Western Australia have the highest level of first home buyers, according to new research by Mortgage Choice.
The group's recent new home loan approval data indicates first home buyers in Western Australia and Queensland accounted for almost one in five loans written throughout February – at 19.57 per cent and 17.00 per cent respectively.
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Victoria had the next highest participation rate for first home buyers with 16.99 per cent, while South Australia's was 4.68 per cent.
In New South Wales, first home buyers accounted for less than one in every 20 loans written – just 3.85 per cent of all loans written in February.
The data also showed that first home buyers accounted for just over 12 per cent of all loans written in February – down from 16 per cent in the 12 months prior.
Mortgage Choice spokesperson Jessica Darnbrough said the results did not come as a surprise.
“This is largely unsurprising when you consider that the state’s capital, Sydney, boasts the country’s highest median dwelling price,” she said.
“In addition, New South Wales no longer offers grants or stamp duty concessions to those first home buyers purchasing an established property.”
Ms Darnbrough noted that research by CoreLogic RP Data shows that more than 70 per cent of first home buyers who purchased their property within the last two years bought an established dwelling.
“As such, it isn’t surprising to see first home buyer participation stronger in the states that not only offer concessions or grants to those looking to purchase an established dwelling, but [in] those states boasting a lower median dwelling price,” she said.
Looking ahead, Ms Darnbrough noted Australia should start to see a slight pickup in the level of first home buyer activity due to low interest rates and moderating property price growth.
“Furthermore, some of the state governments have suggested that they will introduce various new first home buyer incentive programs if elected," she said. "If these promises come to fruition, we should see a small lift in first home buyer activity."
[Related: FHBs ‘copping a bashing’, says Symond]
