#4 Finance Focus - Cheapest Suburbs to Build in NSW, Millionaire Suburbs Revealed, FHB Schemes Proving Valuable & Govt Invests Big in Social Housing
Sam Giardina
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1 in 3 First Home Buyers Using Government Schemes to Secure First Property
In 2023-24, 1 in 3 first home buyers were supported by the Australian Government's Home Guarantee Scheme (HGS), according to Housing Australia's latest report. The Scheme helped 43,800 home buyers, a 34% increase from the previous year, with strong participation from key workers like nurses, teachers, and social workers, as well as regional Australians. Over 18,000 regional buyers were supported, and 11,300 key workers benefited, securing homes near their workplaces.
Victoria saw the highest participation, with hotspots in Hoppers Crossing, Craigieburn, and Cardinia. The median purchase price was $455,000 for singles and $600,000 for joint borrowers.
The Scheme also demonstrated effectiveness as 1 in 5 participants transitioned out after two years, building equity and achieving homeownership sooner amidst rising living costs.
Cheapest Suburbs to Build a House in NSW
A study by Openlot revealed the 50 cheapest suburbs to build a house across five states. In NSW, Griffith is the cheapest suburb to build, costing $276,649, followed by South West Rocks at $281,525 and Cessnock at $301,703. Other affordable areas include Stockton-Fullerton Cove ($323,992), Maclean-Yamba-Iluka ($326,089), and Forster ($340,911).
Nationally, building costs have risen 57% since the pandemic, with Southern Moreton Bay Islands in Queensland being the cheapest place to build in Australia at $230,661, while Point Nepean in Victoria is the most expensive at over $1.2 million.
Interestingly, building costs in regional NSW are $53,452 cheaper than in Sydney, unlike Queensland and Western Australia, where building outside the capital is more expensive.
10 Cheapest Places to Build in NSW:
House Prices Surge by $1 Million in 101 Australian Suburbs
Over the past five years, homeowners in 101 suburbs across Australia have seen their house prices jump by over $1 million, according to PropTrack data. The majority of these suburbs are located in Sydney, which accounts for 86 of the suburbs on the list. Regional areas with significant growth include Byron Bay in NSW, along with several locations on the Sunshine and Gold Coasts in Queensland.
Sydney’s Bellevue Hill saw the most significant price increase, with a median house price rise of over $4 million to $9.75 million. Real estate experts attribute Bellevue Hill's desirability to its prime location near Bondi Beach, Rose Bay, and prestigious schools. Other Sydney suburbs like Vaucluse, North Bondi, and Mosman also saw gains of over $2 million.
In Queensland, New Farm led the growth, with house prices increasing by $1.38 million to $2.8 million, driven by its proximity to the CBD and desirable lifestyle. Other million-dollar suburbs in Queensland include Surfers Paradise, Bundall, and Sunshine Beach.
Western Australia saw significant growth in areas like Cottesloe and Dalkeith, while Adelaide’s St Peters and Melbourne’s Toorak were the sole suburbs in South Australia and Victoria to make the list. Toorak experienced a $1.15 million increase, bringing its median price to $5 million.
Top 20 Suburbs with the largest gains -
Government's Largest Social Housing Investment in Over a Decade
The Australian government will fund the construction of 13,700 new social and affordable homes, the largest investment in social housing in over a decade. These homes, part of the Housing Australia Future Fund (HAFF), will primarily support vulnerable groups such as women and children escaping domestic violence and older women at risk of homelessness. The first round of funding will build 4,220 social homes and 9,522 affordable homes, with construction on nearly 40% of the projects starting this financial year.
The HAFF and the National Housing Accord Facility aim to deliver 40,000 new social and affordable homes over the next five years, leveraging $9.2 billion in investment. The announcement was widely welcomed by industry groups, who praised the government’s decisive action in addressing Australia’s housing crisis.
However, the initiative has drawn criticism from the Coalition, who argue that a lack of skilled labour could hinder the construction of these homes. Despite these challenges, the government remains committed to its long-term plan to build 1.2 million new homes nationally by mid-2029.
Sam Giardina - Finance Broker - Clio Financial
PH: 0422 269 868
W: www.cliofinancial.com.au
DISCLAIMER: This article is intended for informational purposes only and does not constitute financial advice. The content is based on current market data and research but may not be applicable to your personal circumstances. Before making any financial decisions or taking action, you should consult with a qualified financial advisor.