The Sydney Suburbs Most Popular With First Home Buyers

By Fred Rahi

The First Home Buyers Assistance Scheme has had its first full financial year since it was expanded in July 2023.  The 2023 expansion increased the threshold for first-home buyers purchasing property under $1 million.

The threshold for new and existing homes receiving a complete exemption on stamp duty was increased from $650,000 to $800,000, with a reduced rate based on the property’s value being applied to properties up to $1 million. To receive a full or partial discount on stamp duty for vacant land; the threshold remains at $350,000.  

 NSW Premier Chris Minns spoke about helping first-home buyers to break into the market: “In its first year, our program has helped first-home buyers get into the market, without having to leave Sydney or NSW. We have helped more singles, couples, and families to create a future in our state.”  

Zero Stamp Duty

The expanded program has helped 33,365 total first-home buyers pay zero stamp duty, or a reduced rate, on their first home. First Home Buyers in Western Sydney, according to figures released by Chris Minns and Daniel Mookhey, have been the biggest benefactors of the scheme with over 12,500 first home buyers since the expansion.   

Campbelltown and Parramatta stand out as key Local Government Areas (LGAs) for first-home buyers with both being amongst the top for total first-home buyers and increases in first-home buyers receiving assistance. 

Six LGAs; Cumberland, Blacktown, Parramatta, Penrith, Canterbury-Bankstown, and Campbelltown, were host to 9,428 new first-home buyers, a significant 28% of total first-home buyers in NSW. The first home buyers in these LGAs also saved an average of $20,801.  

Fairfield, Campbelltown, Penrith, and Parramatta had above-average increases in their percentage of first-home buyers receiving assistance, ranging from 54 percent to 79 percent. Camden saw an especially large uptick with 366 new first-home buyers, a 110 percent increase from 2022/23. 

LGAs With Above-Average Increases In FHBers Receiving Assistance 

Campbelltown, Liverpool, Westmead, Parramatta, and St Mary’s were the suburbs with the most total value saved, while Homebush Bay, Homebush, Mount Druitt, St Mary’s, and Gosford had the highest money saved per first home buyer. 

Metro Suburbs: Top Ten 

So why are first home buyers finding success in these areas? The ever-rising price of a property in Sydney has made it difficult for many young people to buy into the market, especially in locations closer to the city centre.

Western Sydney suburbs provide a, relatively, affordable option with access to motorways that make travel by motor vehicle to the city centre easier. Furthermore, the still expanding metro line offers another alternative transport option.

Younger cohorts of first-home buyers also have access to local tertiary education with Western Sydney University. As the market value of property inevitably continues to rise, the First Home Buyers Assistance Scheme has seen success in Western Sydney as the area continues to expand.