Changes to the stamp duty laws in both New South Wales and Victoria have seen first home buyers make a comeback in the housing market.
The latest insights into the Australian Bureau of Statistic’s 2016 Census show that first home buyers are rebounding.
In August 2017, there were more than 10,000 first home buyer finance commitments recorded, the highest number of commitments since December 2009.
The biggest factor in the growth of first home buyers is the changes made by New South Wales and Victorian state governments regarding stamp duty. From 1 July, 2017, stamp duty was exempt for first home buyers purchasing properties below $650,000 in New South Wales and below $600,000 in Victoria.
Concessions on stamp duty payments are also available in NSW up to the value of $800,000 while in Victoria they are available up to the value of $750,000.
Since the changes, first home buyer finance commitments in NSW have risen 59 per cent and in Victoria they have risen 34 per cent.
First home buyers around the country
In Queensland, the number of first home buyer commitments for August was higher than its long term average but was down from July. South Australia also reported a lower average number with just 490 first home buyer finance commitments in August 2017, 17.7 per cent lower than the average.
The lowest portion of first home buyer finance commitments was recorded in Tasmania where there were just 129 commitments recorded, 22.3 per cent below the state’s average.
Outside of these states, first home buyers have been taking advantage of more affordable housing prices. In Western Australia and the Northern Territory, first home buyers have been taking advantage of falling price points. Queensland and the ACT have also seen increases in first home buyer activity as housing prices continue to rise in Sydney and Melbourne.
First home buyers are expected to continue to increase with the removal of stamp duty driving sales in New South Wales and Victoria.