Surry Hills is the most sought after suburb for first home buyers in New South Wales

Soaring home values ​​and returning to the office have pushed many first-time homebuyers into high-density and urban areas.

According to new data released by the National Australia Bank on Friday, Surrey Hills, Rhodes and Lane Cove are the areas with the most surge in first-time homebuy activity in the past six months.

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NAB said that after a nationwide increase of 67% in the first four months of 2021 over the same period last year, loans for first-time home buyers in April hit a record high.

During this period, loans in Sydney increased by 70%, while loans in remote areas of New South Wales increased by 107%. The data also shows that despite record demand in April, first-time home buyers loans in remote areas of Sydney and New South Wales fell by 4% and 11% between the first four months of 2021 and the last four months of 2020.

During this period, New South Wales was the only state with a decline in both urban and suburban areas. Andy Kerr, NAB’s director of homeownership, said the level of activity among first-time home buyers is the highest in a generation.

“Record low interest rates and government incentives continue to support demand, and it is great to hear the stories of some customers buying their first home earlier than expected,” he said.

Returning to work has prompted many buyers to return to the inner city. Image: NCA NewsWire / Damian Shaw.

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Mr. Cole said that since January, the value of homes has risen by 11.2%, and first-time home buyers have begun to look for properties in areas different from last year, especially suburbs with apartments.

He said: “For first-time home buyers who own a downtown apartment, there are still many opportunities. The value of these apartments will not rise like houses or other pockets.”

According to NAB data, the most popular suburb for first-time buyers in Sydney is Surry Hills/Darlinghurst, which rose 166%.

Adrian William Director Adrian Tsavalas said that first-time homebuyers activity in inner cities and fringe areas has increased significantly in the past few months.

“Of all the one-, two-, and three-bedroom apartments we sell, about 90% will be sold to first-time home buyers,” he said.

“Many buyers are looking for properties closer to where they work, and now many people are returning to the office.”

After Surry Hills/Darlinghurst, Maroubra (up 238%) is the next sought after suburb, followed by Lane Cove (up 55%) and Rhodes (up 291%). Parramatta, Rockdale, Caringbah, Saint Mary’s and Acacia Gardens are also sought after.

Mr. Kerr said the West continues to attract a lot of interest, from Rhodes to St. Mary.

Parramatta is the only postcode in Sydney that was included in our list of hotspots in December and now,” he said

“Demand in the Southwest has slowed relatively compared to last year, and the strong performance of Surry Hills may be a bit unusual because the surrounding suburbs have not grown much.”

Gosford, Port Macquarie on the Central Coast and Dapto in Wollongong are the most popular regional suburbs in New South Wales.