Renewed confidence: Victorian first-home buyers surge to highest levels in nearly two years

WITH DANIEL WALSH AND LEIGH DELEDIO FROM UFINANCIAL

The number of first-home buyers entering the Victorian property market has surged to its highest level in nearly two years, according to new data from the Australian Bureau of Statistics (ABS).

In July 4,202 Victorian first-home buyer loans were approved, marking the largest monthly total since October 2021. This is a significant increase from June, with 870 more loans granted, reflecting a growing confidence among young buyers despite fluctuating economic conditions.

The surge comes as the Victorian government continues to offer generous incentives to help first-home buyers get onto the property ladder. The First Home Owner Grant, stamp duty exemptions, and shared equity schemes have been instrumental in supporting young Australians in their journey to homeownership.

Despite concerns about rising interest rates, young Victorians are determined to enter the market, taking advantage of these government schemes and various grants.

This determination has pushed first-home buyers to make up a considerable portion of new housing loans, contributing to a nationwide trend.

Experts point out that while the real estate market has been tough for many, these government incentives have played a pivotal role in making homeownership more accessible.

Additionally, many buyers are reassessing their priorities, with some opting for more affordable properties in outer suburbs or regional areas, where prices are lower.

Nationally, the number of first-home buyers also experienced a significant jump, with 10,553 loans approved in July, a 15 per cent increase from the previous month.

This marks the highest level of first-home buyer activity in Australia since October 2021.

With continued government support and a resilient property market, the Victorian first-home buyer boom is expected to remain strong, offering opportunities for more young Australians to secure their place in the property market.