The 10 best suburbs in Sydney for first home buyers
Find out which suburbs in Sydney made the top 10 list in Canstar’s Bright Starters Australian First Home Buyer Report powered by Hotspotting.
There are plenty of great locations in Sydney where you can buy a home for less than $935,000. This was the cut-off price we used to come up with our ‘Bright Starter’ suburbs in the New South Wales capital. (For more on why we chose this see our full report.)
Of course, price isn’t the only consideration for first home buyers. A good lifestyle and prospects for growth should also be on the checklist. In Canstar’s inaugural Bright Starters Australian First Home Buyer Report we used five key metrics – sales volumes, price growth, vacancy rates, infrastructure and proximity to work and amenities – to identify suburbs that are desirable and likely to grow in value over time. Check out our list below.
The 10 best suburbs in Sydney for first home buyers
- Bradbury
- Doonside
- Hillsdale (Units)
- Kingswood
- Leumeah
- Liverpool (Units)
- Lurnea
- Mount Druitt
- St Marys
- Sutherland (Units)
Bradbury
The Campbelltown city centre is an exceptional area for major infrastructure and employment. It includes Campbelltown Hospital, Western Sydney University and TAFE NSW, Macarthur Square Shopping Centre, Campbelltown Mall, numerous schools, parks and sports facilities, and the commuter train station. The suburb of Bradbury, where demand is rising and vacancies are low, abuts the Campbelltown centre. Bradbury also benefits from a green space corridor and local schools.
Doonside
Western Sydney is one of the nation’s most dynamic economies and the focus of massive infrastructure spending, including the new airport. It offers relative affordability with houses in the $600,000s and $700,000s. Doonside is nicely situated near the Blacktown CBD, on the commuter train line and close to the intersection of major motorways, where there are multiple big jobs zones. It also has a vast area of green space.
Hillsdale (Units)
Those seeking affordable Sydney houses generally need to focus on the outer ring but units can get you closer to the Sydney CBD or beaches. Hillsdale is a small suburb near Maroubra, within striking distance of the beach and a National Park. Westfield Eastgardens and Heffron Park sports facilities are nearby. Two golf courses are close, as is Sydney Airport. Vacancies are below the Sydney average and prices are surging.
Kingswood
This suburb is ideally located to benefit from community infrastructure and the employment it generates. It sits between the Penrith CBD and the sprawling education precinct which includes Western Sydney University and TAFE NSW. Kingswood also has Nepean Hospital. It has a commuter train station and abuts the Great Western Highway and the M4 Motorway. Vacancies are relatively low and prices have risen strongly recently.
Leumeah
Affordability, transport and proximity to business parks and commercial-industrial estates are key features in the appeal of Leumeah. It’s also close to the infrastructure and jobs in central Campbelltown. A key lifestyle feature is the green space corridor along Smiths Creek, plus sports facilities near the Leumeah train station. Vacancies are below 1% and prices have started to rise, with houses in the $600,000s and units in the $400,000s.
Liverpool (Units)
The Liverpool CBD is one of Sydney’s key centres for infrastructure and jobs, including Liverpool Hospital, TAFE campus, Westfield shopping centre and Liverpool Plaza, Liverpool Bus Station beside the commuter train station, a number of schools and colleges, and extensive sports facilities. Other big jobs zones are nearby. Units are popular here, with more than 500 sales in the past year and typical prices in the $400,000s.
Lurnea
This is a well-connected suburb, near the intersection of Westlink and the M5 South-West Motorway, with train stations in nearby Liverpool and Casula. There are big business parks and commercial-industrial estates within easy reach, plus the facilities and infrastructure in the nearby Liverpool CBD. There are several schools in the area and a couple of major green space corridors. Prices have jumped in the most recent quarter.
Mount Druitt
This is infrastructure central in Western Sydney, both for existing facilities and planned new ones. Mount Druitt has the region’s major hospital, an education campus, a Westfield shopping centre, sports facilities and a commuter train station. The State Government has announced infrastructure projects topping $1 billion for this location. Houses are in the $700,000s and units about $400,000, with prices taking off recently and vacancies around 1%.
St Marys
With commuter rail, the Great Western Highway and the M4 Western Motorway, St Marys is well connected. It’s one train stop from the facilities and employment possibilities in Mount Druitt. Also close is the big education precinct at Werrington. Within St Marys, there is a precinct of schools, sports facilities and parkland, plus a couple of shopping centres. Houses are in the $600,000s and $700,000s.
Sutherland (Units)
Buyers have inundated Sutherland Shire, drawn by relative affordability and the lifestyle based around water and national parks. The riverside suburb of Sutherland is a hub, with schools, sports facilities, parks, and train links, on the border of the Royal National Park. Prices have surged in the past year, especially the latest quarter, and houses are a bit rich for first home buyers, but units can be secured in the $600,000s.
The best suburbs in Sydney for first home buyers
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Suburb | Median price | 1-year growth | Median rent | 10% Deposit | |||
---|---|---|---|---|---|---|---|
Initial outlay* | Time to save^ | Monthly repayment+ | |||||
Single income | Dual income | ||||||
Bradbury | $650,000 | 12% | $520 | $65,295 | 5 yrs & 10 mths | 2 yrs & 10 mths | $2,645 |
Doonside | $740,000 | 15% | $400 | $93,078 | 8 yrs & 3 mths | 4 yrs | $3,011 |
Hillsdale (U) | $680,000 | 14% | $400 | $74,556 | 6 yrs & 8 mths | 3 yrs & 3 mths | $2,767 |
Kingswood | $770,000 | 20% | $400 | $102,339 | 9 yrs & 1 mth | 4 yrs & 5 mths | $3,133 |
Leumeah | $685,000 | 11% | $395 | $76,100 | 6 yrs & 10 mths | 3 yrs & 4 mths | $2,787 |
Liverpool (U) | $470,000 | 5% | $350 | $47,295 | 4 yrs & 2 mths | 2 yrs & 1 mth | $1,903 |
Lurnea | $800,000 | 16% | $450 | $111,600 | 9 yrs & 10 mths | 4 yrs & 10 mths | $3,255 |
Mt Druitt | $770,000 | 15% | $405 | $102,339 | 9 yrs & 1 mth | 4 yrs & 5 mths | $3,133 |
St Marys | $760,000 | 16% | $400 | $99,252 | 8 yrs & 10 mths | 4 yrs & 4 mths | $3,093 |
Sutherland (U) | $685,000 | 6% | $460 | $76,100 | 6 yrs & 10 mths | 3 yrs & 4 mths | $2,787 |
Sources: Median price, growth and median rent: CoreLogic as at 1 February 2022. Initial outlay, time to save and repayment data: canstar.com.au as at March 2022. (U) stands for units. *Initial outlay includes the deposit, stamp duty, transfer fee and mortgage registration fee. ^Time to save calculations are based on the time required to save up the initial outlay costs with the average income (ABS Personal Income by greater capital city statistical area, adjusted by ABS Wage Price Index, June 2021). Calculations assume that 20% of after-tax income is saved each month, earning a savings rate of 0.62% (average bonus savings rate over the past 12 months to 1/03/22). 2021/22 tax rates plus the 2% Medicare Levy are applied to the annual income and savings interest, and inflation of 2.5%pa is applied to income and property price. Dual income calculations assume there are two savers with the average income. Actual time to save will vary depending on your individual circumstances as well as the rate of property growth. +Repayment calculations assume principal and interest repayments over a 30-year loan term with an interest rate of 3.36% (average owner-occupier variable rate over the 12 months to 1 March 2022). LMI for an owner-occupier first home buyer (per Genworth LMI Premium Calculator) is included in the loan amount for the 10% deposit monthly repayment calculations. For initial outlay, time to save and repayment data based on a 20% deposit download the full Bright Starters report.
Cover image source: aiyoshi597/Shutterstock.com
About Terry Ryder
Terry is the founder and Managing Director of hotspotting.com.au, which he created in 2006 to help investors find the best places to buy. Terry has been a specialist researcher and writer on Australian residential property in a career spanning four decades. During that time he has published four books.
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