First-home buyers are mostly turning to affordable growth areas, new data shows.
Almost 11,000 first-home buyers have bought a South Australian property using the Federal Government’s five per cent deposit scheme, with fewer than 1500 of those building new.
The Housing Australia data reveals they were mostly turning to affordable growth areas, including Blakeview, Andrews Farm, Smithfield, Salisbury, Paralowie and Mount Barker.
Young people under the age of 30 made up the majority of first-home-buyers across the state – 6200 of the 10,800 who had accessed the scheme since it launched in January 2020 – while just 1400 built new homes through the program.
PropTrack senior economist Anne Flaherty said while it was positive 300,300 Australians had been helped into homeownership through the program, it didn’t help supply.
Almost 11,000 first-home buyers have bought a South Australian property using the Federal Government’s five per cent deposit scheme. Picture: Supplied by Colliers.
“A scheme like this doesn’t do anything to increase housing supply,” Ms Flaherty said.
“It’s demand-side policy that pushes up prices, and we have seen that.”
The data shows that the scheme, despite including a New Home Guarantee, has helped just 28,500 people build new homes around the nation since 2020.
In recent years, Ms Flaherty said that even with lower deposit requirements many first-home buyers would have struggled to find affordable options for new builds.
“So it’s absolutely critical that the government needs to be doing everything we can to remove barriers to creating new housing, particularly at affordable price points,” Ms Flaherty said.
“These kind of demand-side policies are never going to be enough.
“We know that this policy has already kicked off higher price growth than would otherwise be seen.”
PropTrack senior economist Anne Flaherty.
However, Ms Flaherty said with wages being outpaced by property prices in most parts of the country over the past few years and interest rates rising, even higher-income earners were seeing limits on the housing they could access today – meaning there was value in the Guarantee.
The Federal Government first-home buyer scheme allows eligible Aussies to get their first home without paying hefty Lenders Mortgage Insurance fees.
In October 2025, the government lifted the guarantee cap, allowing everyone who qualifies to enter the market with the help of the grant.
The SA postcodes of 5114, 5108 and 5115, which encompassed suburbs in Adelaide’s north, were among the areas where most first-home buyers were assisted, as well as 5251 in and around the Mount Barker area and 5162, which includes Morphett Vale and Woodcroft.
In regional SA, 2300 buyers used the scheme to purchase their first home.
The scheme was not the only helping hand first-home buyers were using to get into the market.
Real Estate Buyers Agents Association of Australia President Melinda Jennison. Picture: Supplied.
Real Estate Buyers Agents Association of Australia President Melinda Jennison said there had been a steady rise in first-home buyers whose parents were choosing to fund professional representation.
“It’s a shift that reflects a broader move toward more strategic forms of intergenerational support in a market where competition, complexity and price pressure remain high,” Ms Jennison said.
“Parents are looking for ways to help without taking on the exposure that comes with going guarantor or providing large cash gifts.
“For many, covering a buyers’ agent’s fee feels like a practical, upfront investment that gives their children expert guidance from the very start.”
Ms Jennison said the shift is particularly noticeable among fathers supporting their daughters.
“They want their daughters to have someone in their corner – someone who can negotiate hard, spot red flags and ensure they’re not overpaying, especially in hot markets,” she said.
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