SA most accessible market, but few first time buyers: Bankwest
South Australia is officially the most accessible state for first home buyers in Australia but only one in 10 properties bought there are first time purchases, reveals a report by Bankwest.
First time buyers (FTBs) in SA require the lowest deposit of anywhere in the country and correspondingly can save for it in the shortest time, it says.
FTB couples require just $80,985 to purchase a median priced house, the lowest deposit of any mainland state and territory.
First timers need to save for only 3.8 years, stable compared to 2016 levels (3.8 years) and well below the national average of 4.6 years, says the 2017 Bankwest First Time Buyers Report.
South Australia has the second highest proportion of local government areas (LGAs) with a required savings time of less than four years for a house. Across South Australia, 73.3% (44 out of 60) LGAs require less than four years saving.
Only Queensland (83.0% or 39 out of 47) has a higher proportion of LGAs.
The findings also show that SA FTBs have the lowest average loan size of all mainland states of $264,200, highlighting just how accessible the South Australian market is for FTB couples despite having the lowest wages nationwide.
However, in spite of all these positive indicators, South Australia has the second lowest proportion of FTBs in Australia – just 11.1% - in the year to June 2017.
“A potential reason for such low first time buyer presence in the South Australian market is the fact that the people between 25-34 years old – a prime first time buyer age bracket - have the second lowest wages nationwide of just $51,629 in 2017,” Bankwest general manager personal and small business banking, Donna Dalby said.
“Additionally, SA has the oldest population demographics in the country after Tasmania,” she added.
At a city level, couples wanting to buy in Adelaide will have to save for 4.2 years to raise the required $90,665 deposit on a median priced house (stable compared to 2016 (4.2 years) and below the capital city average of 4.9 years).
While most FTB couples will be looking to get a house as quickly as possible, those in no hurry could look to try to buy in SA’s Burnside area. FTBs there will require an average of seven years - the longest saving time in the state - to save a median deposit of $177,596. The saving time here rose by two months year on year, driven by a 4.9% increase in house prices.
A three-bedroom house at 30 Olympic Way in Roxby Downs (picture above) sold in October 2017 for $170,000. It previously sold for $180,000 in 2004, CoreLogic Data shows.
A four-bedroom house at 96 Tiliqua Crescent in Roxby Downs (picture below) sold for $300,000 in July 2017.
