First-Home Buyers Driving Adelaide’s Property Market Surge
Adelaide’s property market is experiencing a surge in first-home buyer activity, fuelled by favourable economic conditions, generous government incentives, and relative housing affordability. In a landscape once dominated by seasoned investors and upsizers, first-home buyers are now leading the charge—well-informed, well-financed, and more confident than ever.
A Competitive Market with Affordable Entry Points
According to the latest CBRE national survey of residential valuers, Adelaide and the ACT are currently the most active markets for first-home buyers. Ray White SA chief executive Matt Lindblom attributes this to affordability and accessibility.
In Adelaide, the sweet spot for first-home purchases lies between $500,000 and $900,000. Within this bracket, buyers can secure two- to three-bedroom homes within a reasonable distance of the CBD. Northern and southern suburbs—once considered fringe—are thriving, thanks to their quick access to the city and a growing amenity base.
Interest Rate Cuts and Incentives Making a Mark
The recent interest rate cut to 3.85 per cent has played a pivotal role in improving borrowing capacity and boosting buyer sentiment. At the same time, state and federal government support programs are lowering barriers to entry:
First Home Owner Grant (FHOG): Offers financial support for those buying a new build, house-and-land package, or vacant land.
Stamp Duty Relief: Reduces upfront costs, which are often the most significant hurdle for first-time purchasers.
First Home Guarantee Scheme: Allows eligible buyers to secure a loan with just a 5 per cent deposit without needing to pay Lenders Mortgage Insurance (LMI).
Together, these measures are helping first-home buyers not only enter the market but do so competitively—with many submitting unconditional offers and being pre-approved before bidding.
A New Kind of First-Home Buyer
Real Estate Institute of South Australia (REISA) chief executive Andrea Heading notes a shift in the typical first-home buyer profile. “They’re not all young professionals. Many are long-time renters or mature buyers finally ready to enter the market,” she says.
This diversification means first-home buyers are no longer seen as ‘entry-level’ purchasers. Instead, they are informed, motivated, and realistic about what their budget can achieve. With many now open to units and apartments as a stepping stone to house ownership, the landscape is shifting to reflect changing needs and expectations.
Advice for Aspiring First-Home Buyers
While the market is buoyant, experts encourage buyers to stay grounded:
Be Realistic: Understand what an achievable entry point looks like in today’s market.
Get Educated: Know your financing options and have a clear idea of your borrowing capacity.
Act Quickly: With high demand in the $500K–$900K range, delay can mean missing out.
