First homebuyer

Good news for first-time buyers, tenants

PHOTO: First homebuyer activity is at an 11-year high. Source: istock

Sydney’s housing market has flipped from an environment favouring investors to one where renters and first homebuyers now hold all the cards and are getting cheaper deals.

Renters and first homebuyers have been calling the shots in the Sydney housing market as investors release their stranglehold on prices.

First homebuyer spending shot to an 11-year high in August, with housing experts revealing first-timers filled the void left by investors struggling to get loans for new purchases.

Investors once accounted for close to 60 per cent of all NSW property purchases, according to ABS research, and historically competed for the same properties as first homebuyers.

Renters benefited from the recent spike in first homebuyer spending as tenants departing rentals to move into their first homes drove up vacancies and helped moderate rents.

Tenants were already in a commanding position, with the exodus of international students and travellers from the market during COVID-19 helping push down Sydney rents by an average of nine per cent annually.

Falls were even larger within inner suburbs – including Pyrmont, Surry Hills, Potts Point and Darlington, where rents dropped an average of more than 20 per cent over the past year, according to SQM Research.

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