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The latest First Home Buyer Mortgage Insights Report released by Money.com.au has shown that South Australia is emerging as a top market for first home buyers.
According to data collected from December 2024, first home buyer loans now account for 34.9 per cent of all owner-occupier loans in South Australia, marking a record-high share for the state.
Simultaneously, the research revealed that first home buyer annual loan growth in the state slowed to 5.1 per cent, sitting below the national average of 5.9 per cent.
According to the insights, this suggests that overall growth remains modest despite the large share of first home buyers hold in the South Australian market, which has created an opportunity for new buyers to capitalise on the state’s lower house prices and smaller average loan sizes in order to enter the property market.
Money.com.au’s property expert Mansour Soltani said due to the number of first home buyers having already entered the South Australian market, growth is easing while reducing the risk of competition increases house prices.
“While Adelaide’s median house price recently hit the $1 million mark, there are still plenty of affordable pockets outside of the city and in regional South Australia where first home buyers can get into the market without taking on excessive debt,” Soltani said.
“The average annual loan size for first home buyers in South Australia is still below $500,000, so affordability remains a major drawcard.”
Additionally, first home buyer investors are also identifying the opportunities that the South Australian market holds.
According to the report, there were 586 first home buyer investor loans issued in South Australia over 2024, 7.1 per cent of the national first home buyer investor market.
Notably, this was higher than the South Australian owner-occupier share of 6.3 per cent, which suggests that some savvy buyers have homed in on the investment potential within the state.
FHBs catching up to owner-occupier market
Overall, the insight report has found that first home buyer loans are catching up to the broader owner-occupier market, with the total number of loans reaching 125,220 in 2024, representing an annual growth rate of 5.9 per cent, now in line with the rest of the owner-occupier market (6 per cent).
The first home buyer annual growth rate is expected to outpace the broader owner-occupier market over the course of 2025. First home buyer loans are projected to rise 6.5 per cent to 133,308, while the remaining owner-occupier market is forecast to grow by 5.3 per cent (216,210 loans), according to Money.com.au.
Soltani said this has marked a “major turning point”.
“First home buyers are always playing catch-up with upgraders who have equity behind them. But now, that gap is finally starting to shrink,” Soltani said.
“This is partly due to the uptake of state grants and the First Home Guarantee.
“With interest rates falling, we’re likely to see affordability pressures ease, borrowing power improve, and more first home buyers take their shot at homeownership in 2025.”
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