First-home buyers contested the $492,000 sale of 88A Kitchener Street, Broadmeadows.
Victorians travelled further and took on more debt on average than any other state to take up the government’s First Home Loan Deposit Scheme.
And Broadmeadows was their main destination in Victoria, with half of the nation’s 10 most popular postcodes for the scheme in Melbourne, according to figures released by the National Housing Finance and Investment Corporation (NHFIC).
The data covers the scheme from the start of 2020 to June 30 and shows the average Australian first-home buyer travelled 7.6km to get a foot on the property ladder.
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But Victorians trekked 10.4km. They also took on more debt than any other state, owing a median $456,000 compared to $427,500 in NSW.
Demand was concentrated in Melbourne’s outer suburbs except for postcode 3064, home to Broadmeadows and Tullamarine, which was the most popular in the state and fourth highest nationwide.
YPA Glenroy’s David Taylor said Broadmeadows’ popularity hinged on its affordability and proximity to the CBD.
1/284 Camp Road, Broadmeadows attracted first-home buyers chasing the First Home Owner Grant and the deposit scheme.
“Most of the buyers were coming from other parts of Melbourne, just because of the price point and proximity to the city, particularly from the eastern suburbs,” Mr Taylor said.
“And some were waiting for the second wave (of the scheme) so they will come back soon, hopefully.”
An affordable unit or townhouse in the area might set a buyer back $370,000-$420,000, while houses could be had for $500,000-$570,000, he said.
New builds in affordable suburbs present a particularly tempting target for first timers.
Most who came to the area looked at new townhouses, however, as this allowed them to claim the $10,000 First Home Owner Grant from the state government as well.
Under the First Home Loan Deposit Scheme, first-time buyers are able to purchase a home — up to a maximum value $600,000 in Melbourne — with as little as a 5 per cent deposit through one of 25 approved lenders.
The government then guarantees the loan for the difference between the deposit (5 per cent) and 20 per cent of the total value of a qualifying property.
MELBOURNE DEPOSIT SCHEME HOT SPOTS
Tullamarine and Broadmeadows – 52
Cardinia – 49
Casey – 49
Wyndham – 46
Werribee – 45
Source: National Housing Finance and Investment Corporation
NHFIC chief executive Nathan Dal Bon said demand for the scheme had continued despite the COVID-19 pandemic and noted more than half the homes purchased as part of the scheme had been within 30km of Melbourne’s CBD.
“First-time Melbourne buyers pursing their dream of home ownership appear to have been able to buy closer to the CBD than their Sydney counterparts under the scheme,” Mr Dal Bon said.
One in six of the scheme’s applicants around the nation were key workers, with teachers accounting for just over a third of that number and nurses a quarter.
Villawood Properties has sold discounted lots to key workers for a number of years and executive director Rory Costelloe said while there had always been demand from such buyers, they had come to the fore during the COVID-19 pandemic.
“They are more confident about their job security and maybe the banks are of the same opinion,” Mr Costelloe said.
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