New lending data from NAB has revealed the regional locations proving a hit with first-home buyers.
In regional NSW, Orange and Wagga, in the Central West region, and Dapto, in the Illawarra, were the areas seeing the biggest increase in first-time buyers for the three months between April and June.
In Victoria, Warrambool, in the state's south west, was the most popular destination for first-time buyers outside of Melbourne, with buyer activity there up 85 per cent during the same period.
Belmont, a suburb of Geelong, and Sunbury, on the edge of Melbourne's north west, also saw a large increase in borrowing to first-home buyers.
The ACT was home to the suburbs recording the greatest growth in first-home buyer activity, activity in Ainslie and Watson increasing by a whopping 360 per cent.
The figures are based on postcode level lending data for NAB loans to first-home buyers.
Lending to first home buyers in regional areas had increased by 4.5 per cent in the 12 months to June 2022, according to NAB.
This figure is down on the previous 12 months, when first-home buyer lending in regional areas grew by 88 per cent, according to the bank.
NAB Executive Home Ownership, Andy Kerr said that hybrid working arrangements were likely a strong factor driving the growth in regional lending - with flexible working policies giving Australians options to buy in areas they previously may not have considered.
"Flexible working is one of the biggest trends over the last decade when it comes to changing the game for property sales," Mr Kerr said.
"All of a sudden, a slightly longer commute when made a few times a week becomes a serious consideration.
Mr Kerr said that current market conditions, with prices falling, were good news for first-time buyers despite the growing cost of living crisis.
"With a combination of house prices declining and the recent release of the First Home Guarantee Scheme, there is renewed optimism for first home buyers," he said.
In the capitals, Sydney's western suburbs and Melbourne's south-east were home to the majority of postcodes witnessing an increase in first-home buyer activity, according to the NAB data.
"Western Sydney is a hot pick for first home buyers. Suburbs in the west are providing great value, with the city and local businesses going from strength to strength," Mr Kerr said.
"Last year we noticed south-east Melbourne proving to be popular for first home buyers and 2022 has continued that trend."
The NAB data comes as recent figures from the Australian Bureau of Statistics show 13,869 first-home buyers took out home loans in the month of June, down 1,181 on May's figures.
