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Speaker 1: We do know that Domains and Your First home Buyer

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Speaker 1: report has revealed that Darwin is the best city for

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Speaker 1: the first home buyers looking for an entry priced house,

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Speaker 1: with the fastest saving time at three years and six months.

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Speaker 1: It's also found that units in Darwin have the second

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Speaker 1: fastest saving time, being two years and three months. Now

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Speaker 1: joining me is Domain's chief of Research and Economics, doctor

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Speaker 1: Nicola Powell. Good morning to you.

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Speaker 2: Good morning or almost good afternoon.

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Speaker 1: It is well for you, yes, still early for us. Nikola.

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Speaker 1: Now now let me ask you. I know that obviously

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Speaker 1: there has been this report released. Can you talk us

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Speaker 1: through the findings for homes in Darwin.

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Speaker 2: Absolutely. So, it's almost like a time machine has been

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Speaker 2: given to first home buyers in Darwin because we have

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Speaker 2: seen property or entry level property prices all in Darwin,

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Speaker 2: both for houses and for units. We've also got hiring

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Speaker 2: interest rates, So what that means is people are finding

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Speaker 2: that interest rates on savings are higher than what they were.

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Speaker 2: And we've also seen a bit of wages growth. So

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Speaker 2: all of those three things together have aligned to reduce

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Speaker 2: the time it takes to save for an entry level

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Speaker 2: deposit in Darwin. And actually most of our capital cities

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Speaker 2: did see a decline in the time to say so

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Speaker 2: it is based on a couple, and we're based it

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Speaker 2: on an average age of that couple aged between twenty

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Speaker 2: five and thirty four years old. They're really kind of

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Speaker 2: prime in that kind of first journey of trying to

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Speaker 2: save for a deposit and by their first time and

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Speaker 2: it is good news. You know, we saw the time

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Speaker 2: it takes to save for an entry house depositing Darwin

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Speaker 2: decline by nine months compared to this time last year,

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Speaker 2: and even for units it was down by two months

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Speaker 2: over the last year. So a bit of good news

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Speaker 2: for first time bias.

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Speaker 1: And so is that really the trend here? Is that

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Speaker 1: sort of why we are in a situation? I suppose

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Speaker 1: we're we're for Darwin, we're bucking the trend. I guess yeah. Look,

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Speaker 1: I think the biggest.

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Speaker 2: Thing reducing this time to save has really been the

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Speaker 2: fall in property prices. And really, you know, the best

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Speaker 2: outcome for first time buyers is when you do see

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Speaker 2: property prices pull back, because what that means is saving

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Speaker 2: that all important twenty percent deposit is much less. So

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Speaker 2: it means that journey time of saving that lump sum

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Speaker 2: deposit is shorter, and you know we are. We have

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Speaker 2: seen prices pullback over the last twelve months. The only

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Speaker 2: city that did truly buck the trend was Adelaide, where

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Speaker 2: we did see an increase in the time it takes

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Speaker 2: to save for a house unit deposit in Adelaide, and

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Speaker 2: that really does reflect the stronger market conditions there.

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Speaker 1: Yeah, right, And so how do we compare in Darwin.

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Speaker 1: I guess to some of those other locations. As you've said,

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Speaker 1: Adelaide bucking the trend, but how do we compare it

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Speaker 1: to some of the other capital cities.

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Speaker 2: Absolutely so, Darling really wins the trophy for the best

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Speaker 2: market for first time buyers. It has the quickest time

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Speaker 2: to take. It takes to save for an entry house

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Speaker 2: deposit three years. In six months, I'm going to go

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Speaker 2: to the other end of the spectrum, which is our

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Speaker 2: longest journey time to save. We can probably all guess

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Speaker 2: which city that is. It is Sydney six years and

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Speaker 2: eight months to save for an entry level house to

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Speaker 2: posit in, So you know, someone is almost hard. You

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Speaker 2: know that roughly about half that some our other cities.

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Speaker 2: For the second longest time it takes to save is

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Speaker 2: good old camera you know, the nation's capital six years

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Speaker 2: to save for an entry house to posit in camera

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Speaker 2: some of our more affordable or I Stal wouldn't therefore,

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Speaker 2: all some of our other cities that have the shortest

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Speaker 2: savings time, Darwin is number one and in at number

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Speaker 2: two is Perth at three years seven months. Or remember

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Speaker 2: Darwin is three years and six months, and.

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Speaker 1: So what about when it comes to units, so.

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Speaker 2: Darwin is also up there. It doesn't have the quickest

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Speaker 2: time to save out of all of our capitals. Perth

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Speaker 2: takes out that crown at two years and three months,

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Speaker 2: but Darwin is very close two years and six months.

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Speaker 2: So it's certainly one of our quiter market entrants in

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Speaker 2: terms of you know, this is really about gaining access

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Speaker 2: to the market. How quickly does it take me to

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Speaker 2: save for that all important twenty percent deposit person Darwin?

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Speaker 2: The houses and units are up there our more expensive

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Speaker 2: cities such as Sydney and Melbourne. For unit, it takes

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Speaker 2: four years and seven months to save for an entry

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Speaker 2: unit deposit in Sydney, so you know, again roughly about

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Speaker 2: half the time in Darwin. So really positive news I

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Speaker 2: think for prospective first time buyers in Darwin.

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Speaker 1: And Nicola. How long has it been since we sort

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Speaker 1: of saw entry prices well for houses with the fastest

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Speaker 1: saving time at this rate in Darwin.

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Speaker 2: Look, Darwin always seems to kind of come out a

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Speaker 2: little bit up top in terms of trumping the other

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Speaker 2: cities in terms of fastest journey time. You know. I

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Speaker 2: think in recent years anyway, Sydney and Melbourne are always

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Speaker 2: the ones that are the longest, tend to be the

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Speaker 2: longest journey times. Canberra has really risen up the rank

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Speaker 2: in recent years in terms of we've really seen an

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Speaker 2: escalation of house price there. But I think the new

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Speaker 2: thing we do this report annually. The difference this year

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Speaker 2: compared to last year is we look at mortgage serviceability,

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Speaker 2: but we also look at the time it takes to save.

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Speaker 2: And I think the biggest turnaround here is the fact

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Speaker 2: that we have seen a shortening in the time it

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Speaker 2: takes to save for an entry level deposit. We still

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Speaker 2: have got the time it takes to save higher now

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Speaker 2: in Darwin compared to pre pandemic, it's one month longer

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Speaker 2: than it took back in March of twenty twenty, and

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Speaker 2: it's two months longer compared to five years ago. What

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Speaker 2: I would say though, is Darwin is offering a much

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Speaker 2: more stable environment for first home buyers and you look

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Speaker 2: to more double cities and I'm going to pick out

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Speaker 2: an extreme here and that is Hobard. Hobart's time to

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Speaker 2: take to save has blown out by seventeen months compared

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Speaker 2: to pre pandemic levels. Wow, and that's comparison, It doesn't

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Speaker 2: it really show that Darwin offers that much more stable environment.

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Speaker 2: So it means that first time buys have a much

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Speaker 2: better chance of keeping up with pockety market dynamics in Darwin.

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Speaker 1: Well, Nicola Pale, we always appreciate your time. Thank you

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Speaker 1: very much for coming on the show this morning and

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Speaker 1: just having a bit of a chat to us about

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Speaker 1: the annual First Home Buyer Report.

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Speaker 2: Absolute pleasure, Thank you, thank you, Thanks so much,