Sales agent Peter Diamantidis,director of Ray White Diamantidis Group in St Marys and St Clair,said first home buyer demand had started the year strong,partly due to the roll-out of the property tax.
Of the 14 sales his team made last week,12 were to first home buyers. Most were from out of the area,and were generally looking at homes priced up to $800,000.
Diamantidis said buyers with a $750,000 to $800,000 budget would be looking at older three-bedroom homes in need of work,on between 550 and 700 square metres. The occasional four-bedroom home would also be within reach.
Those with a $1 million budget could secure a four- or five-bedroom home built in the past 20 years.
Diamantidis expected Labor’s announcement would prompt some first home buyers to delay purchasing until after the election,particularly given property prices were tipped to fall further in the months ahead.
To purchase closer to the city,first home buyers could look to apartments in suburbs like Epping ($788,000),Woolooware ($780,000) and Marrickville ($770,000).
McGrath Epping’s Rebecca Li said most first home buyers in her market targeted the $650,000 to $800,000 price range,to qualify for a stamp duty concession.
“You’re definitely still[limited] to an apartment[at $800,000] ... mostly two-bedroom apartments,though for some older units you might get a three-bedroom with 1.5 bathrooms,” she said.
For those with a higher budget,median house prices in suburbs like Seven Hills ($996,000),Merrylands West ($995,000) and Auburn ($989,000) would be eligible for a stamp duty concession,as would apartments in Roseville ($996,500),Eastgardens ($995,000) and Maroubra ($980,000).
Median house prices in suburbs like Marsden Park ($1.15 million) and Sutherland ($1,124,000) and Camden ($1,097,500),would be ineligible for a concession.
Buyer’s agent John Soliman,principal of Shire Buyer,said those with a budget of $800,000 could afford to purchase a unit in most of the region,while those with $1 million could still get a townhouse in pockets of Sutherland,Kirrawee and Jannali.
“There are $800,000 units in Cronulla,obviously though you’re going to be looking at a one-bedder maybe in need of renovation ... if you need a two-bedder you go to Woolooware and Caringbah,and then move out from there,” he said.
Soliman expected the expanded scheme would be popular with first home buyers,but felt those close to purchasing were unlikely to put their plans on hold. He expressed concern that developers may increase prices for eligible properties,once they knew first home buyers no longer had to spend money on stamp duty.