Buoyed by incentives and record low interest rates, buyers are on the hunt for their first homes.
Stamp duty reductions and the first-home loan deposit scheme have also assisted these buyers, according to Barry Plant agents.
First-home buyers are out in force in Preston, Northcote and Thornbury, Barry Plant Preston director, Loretta Khoo said.
“They have been saving for the past nine months and armed with low interest rates and government benefits, they are ready to break into the market,” she said.
First-home buyers are eyeing more affordable outer suburbs where they are taking advantage of government grants for new builds, according to REA Group director of research, Cameron Kusher.
These buyers have been actively seeking properties in outer north suburbs such as Wallan, Kilmore and Broadford, according to Barry Plant Mitchell Shire director, Simon Best.
“Buyers looking for their first home make up about 50 per cent of the market,” he said.
Coming mainly from the northern suburbs, first-time buyers are snapping up newly built homes or vacant lots in land developments released last year, including Sunset Views, Meiers Run and Highgate Estate.
Affordability, a quieter lifestyle, new road and rail links, along with proximity to employment hubs in Epping and Campbellfield, and quality schools, were the main drawcards to these areas on the urban fringe.
Melton, in Melbourne’s outer west, was also a haven for first-home buyers, according to Barry Plant Melton partner/auctioneer Ned Nikolic.
“With a median price of $410,000, Melton is Melbourne’s most affordable suburb,” he said.
“Compared to the big smoke, you’ll get more bang for your buck in this area.”
Two weeks ago, a young couple forked out $400,000 for a four-bedroom house at 12 Shaheen Court, Melton West, because of its affordability and location near a primary school and park.
Drawn to the low price point and land size, a couple from Maidstone bought their first home at 20 Roderick Drive, Kurunjang for $440,000.
The three-bedroom house on a 669sq m block had only been on the market for a week with the advertised price of $409,000-$439,000.
Mr Kusher expected the demand from first-home buyers to remain strong in early 2021, then decrease when the extended HomeBuilder scheme ends on March 31.