First-home buyers flooding Adelaide property market

First-home buyers are out in force and well prepared to challenge their more experienced counterparts in Adelaide’s competitive market.

Industry experts say the city’s affordability, interest rate cuts – the latest taking the official cash rate to 3.85 per cent – as well as government incentives are fuelling them.

It comes as CBRE’s latest national survey of residential valuers reveals first-home buyers were most active in Adelaide and the ACT.

Ray White SA chief executive Matt Lindblom said affordability was a major factor.

“We’re seeing that properties in that $500,000 to $900,000 price bracket, a lot of first-home buyers are buying in that range,” he said.

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“The most competitive auctions and where we’ve got the highest clearance rates are in that bracket.

“You can still buy a two or three-bedroom property with reasonable proximity to Adelaide in that price range, and it will be a nice home.”

Mr Lindblom said unlike other cities, Adelaide’s more affordable northern and southern suburbs were still attracting strong interest because they were easily – and quickly – accessible from the city.

Falling interest rates and government incentives were also driving first-home buyers, he said.

In South Australia, those looking to buy a new build or off-the-plan apartment, a house and land package, or vacant land to build a new home could be eligible for the first home owner grant and stamp duty relief.

Mr Lindblom said the Federal Government’s first home guarantee scheme allowing buyers to purchase with a 5 per cent deposit was also enticing.

“First-home buyers are competitive, they’re prepared, they’re unconditional – they’re educated around what they need to do to get a property,” he said.

Real Estate Institute of South Australia chief executive Andrea Heading said while prices were rising across the state, first-home buyers were willing to pay fair prices.

“Vendors are seeing a good return but first-home buyers are feeling more confident in terms of what the expectation is,” she said.

“People have to remember first-home buyers aren’t a certain demographic, or young people, as well.”

Ms Heading said many were mature or have been long-time renters.

Meanwhile, she said more people were open to purchasing units and apartments before a house.

She encouraged those buying their first home to be realistic about price, “as in, what does an entry point look like for you?”

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