First-home buyer activity has surged across Australia, with new Australian Bureau of Statistics data showing a 6.8 per cent rise in loan commitments for the December quarter.
According to the ABS a total of 31,783 first home buyer loans were approved, being the largest quarterly increase since late 2023, as a new federal scheme and rising inner-city prices push more buyers into outer suburban markets.
Source: Domain
ABS head of Finance Statistics, Dr Mish Tan said in a media release the rise was broad based.
“There was a strong growth across all borrower types this quarter,” she said.
“The number of first-home buyer loans rose 6.8 per cent, investor loan numbers rose 5.5 per cent, and owner-occupier non-first-home buyer loans rose 3.6 per cent.”
NSW recorded the strongest growth of any state, with first-home buyer loans jumping 10.9 per cent.
Source: ABS
In southwest Sydney, the trend is already reshaping the market.
Harcourts The Property People sales director, Paul Casarotto said the first-home buyers demand began accelerating in late 2025.
“October and November were the turning point,” he said.
“Since then, first-home buyers have made up a much bigger share of our sales.”
Mr Casarotto said affordability pressures and new government incentives, including the expanded 5 per cent Deposit Scheme and the Help to Buy Scheme have drawn buyers from across Sydney.
“We’re seeing a lot of people from Bankstown, Canterbury‑Bankstown, St George and Liverpool moving this way because they simply can’t afford to buy where they are,” he said.
He described buyers as ‘more desperate than confident’, with many stretching their budgets to secure a property before prices rise further.
ABS data supports this trend with the average first‑home buyer loan size rose a record 8.5 per cent in the quarter to $607,624, driven largely by NSW borrowers.
Sourced from ABS.
Couples make up most new entrants, though singles are increasingly purchasing apartments or smaller units, often with family assistance.
Mr Casarotto said the typical first‑home buyer is now in their 30s, reflecting the longer time needed to save a deposit.
“If investors and upgraders step back, that opens the door,” he said.
“The sooner they enter the market, the better.”
Despite economic uncertainty and the possibility of further interest rate rises, Mr Casarotto believes first‑home buyers still have an advantage in the real estate.
