Bright Starters: Canstar’s Australian First Home Buyer Report 2022
Welcome to Bright Starters 2022: Canstar’s inaugural Australian First Home Buyer Report powered by Hotspotting. This report ranks 14 jurisdictions across Australia – comprising eight capital cities and six regional locations – from most affordable to least affordable.
We used the time needed to save a deposit and stamp duty (after any concessions) and repayments as a percentage of income to determine the rankings. The property price was based on the lower quartile (25th percentile) sales price for houses in each location.
We have also identified 107 ‘Bright Starter’ suburbs across the country that may be suitable for first home buyers. These suburbs and towns are both affordable and have the potential to achieve capital growth.
It’s probably not surprising that regional areas tend to be a more affordable option for first home buyers than our country’s capital cities. The only exception is Perth which sits among the six regional locations in the top half of our list in terms of affordability.
Regional Western Australia is in the top spot even though the lower quartile sales price is higher than that of Regional South Australia which is in second place. That is thanks largely to the fact that the average income in Regional WA is higher than that in Regional SA.
In third spot is Perth which is then followed by the remaining regional jurisdictions. Our inaugural Bright Starters First Home Buyer Report found that it is possible for a couple to save enough for a 10% deposit and stamp duty in about two years for all of the locations in our top seven. The monthly repayments for a 90% loan plus lenders mortgage insurance (LMI) are also quite manageable for couples buying in these areas. They account for less than 20% of their combined income.
This time starts to blow out for the remaining capital cities. In Hobart, Canberra and Melbourne, which are ranked 11th, 12th and 13th, it’s closer to four years. The monthly repayments also take a larger chunk of their income. On a loan for 90% of the property value plus LMI, they come to more than 20% of their income.
With a lower quartile sales price of $850,000, Sydney is the least affordable place for first home buyers to buy a property. It would take those on a dual income more than five years to save a 10% deposit and the repayments on their loan would equate to 26.9% of their income.
Brisbane . Ranked 8th
Brisbane might be eighth on the list in terms of affordability but it is the second most affordable capital city after Perth. It would take a single person four years and nine months to save enough money for a 10% deposit and the stamp duty costs. A couple could reach that goal in about half that time.
Regional Queensland . Ranked 4th
It’s possible to get your foot on the property ladder in Regional Queensland in less than two years if there are two of you saving. This has helped it secure fourth spot. It would take someone on a single income three years and eight months to save enough money for a 10% deposit and stamp duty.
Check out Regional Queensland’s Top 10 Bright Starter suburbs →
Sydney . Ranked 14th
It probably comes as no surprise that Sydney is the least affordable location in Australia for first home buyers to buy property. Even at the lowest quartile, the sales price is pretty high at $850,000 which means you’d need to save $85,000 for a 10% deposit or a whopping $170,000 to get a 20% deposit.
Regional New South Wales . Ranked 7th
Even though it is the least affordable regional location in Australia, it’s possible for first home buyers to secure a home for less than $400,000 in Regional New South Wales. It would take a single person earning about $59,000 four years and four months to save a 10% deposit.
Regional Victoria . Ranked 6th
Regional Victoria is one of the least affordable regional locations for first home buyers – only ahead of Regional New South Wales. Overall it is sixth in terms of affordability. It’s possible for a single person to save enough money for a 10% deposit and the extra costs in four years and two months.
Check out Regional Victoria’s Top 10 Bright Starter suburbs →
Hobart . Ranked 11th
Hobart is the fifth least affordable capital city for first home buyers behind Perth, Brisbane, Darwin and Adelaide but ahead of Canberra, Melbourne and Sydney. It would take someone on a single income just under seven and a half years to save enough for a 10% deposit plus stamp duty and charges.
Regional Tasmania . Ranked 5th
While Hobart was ranked 11th in terms of affordability, Regional Tasmania has fared better coming in at fifth spot. It’s possible for someone on a single income to save enough money for a 10% deposit plus stamp duty and charges in four years and four months. That time is halved for those on two incomes.
Check out Regional Tasmania’s Top 4 Bright Starter suburbs →
Adelaide . Ranked 10th
Adelaide’s lower quartile sales price of $428,000 might be lower than those of Brisbane ($470,000) and Darwin ($465,000) but it ranks below those two cities in terms of affordability. It would take someone on a single income six and a half years to save enough money for a 10% deposit plus stamp duty and charges.
Regional South Australia . Ranked 2nd
Regional South Australia is the second most affordable jurisdiction in Australia just behind Regional Western Australia. It would take someone on a single income just three years and five months to save enough money for a 10% deposit plus stamp duty and charges.
Perth . Ranked 3rd
Perth has come third overall in terms of affordability making it the most affordable capital city in Australia. It is even more affordable than most regional areas. It’s possible for someone on a single income to save enough money for a 10% deposit plus stamp duty and charges in three years and eight months.
Regional Western Australia . Ranked 1st
Regional Western Australia is the most affordable location of the 14 jurisdictions considered. It would take someone on a single income two years and nine months to save enough for a 10% deposit plus stamp duty and charges while those with two incomes could save it in one year and four months.
Check out Regional Western Australia’s Top 4 Bright Starter suburbs →
Darwin . Ranked 9th
Darwin is the third most affordable capital city behind Perth and Brisbane. It would take someone on a single income just under six years to save enough money for a 10% deposit and the stamp duty and fees. A couple saving 20% of their pay could reach that same target in two years and 11 months.
Important Information
To the extent that any advice is contained in Bright Starters: Canstar’s 2022 Australian First Home Buyer Report (Powered by Hotspotting by Ryder), such advice is general and has not taken into account your objectives, financial situation, or needs. It is not personal advice. Consider whether this advice is right for you, having regard to your own objectives, financial situation and needs. You may need financial advice from a suitably qualified adviser. Consider the product disclosure statement (PDS) and Target Market Determination (TMD) before making a decision about a financial product. Contact the product issuer directly for a copy of the PDS and TMD. For more information, read Canstar’s Financial Services and Credit Guide (FSCG), and read our Detailed Disclosure.
This report has been prepared as a guide only and is not a recommendation about taking any particular action. We recommend that you seek professional advice from a suitably qualified adviser before electing to make any property investment decision.
All information about performance returns is historical. Past performance should not be relied upon as an indicator of future performance. The value of your investment may fall or rise. Forecasts about future performance are not guaranteed to occur.
A property investment may not be suitable for all people and the information in this report does not take into account your individual needs or investment risk profile. There are no certainties in property investment and as with any investment, there are always risks and variables that need to be taken into account.