First home buyers in Canberra will need to save for six years on average for an entry-level house deposit, according to a new report from Domain.

The Domain First Home Buyers report revealed with rising property prices it would now take a couple an additional nine months to save for a 20% deposit on an entry-level priced home, compared with this time last year. Canberra saw the biggest jump in timeframes of any capital city, followed by Sydney, Hobart and Darwin with a six-month increase.

Over five years, the savings timeframe for ACT first home buyers has increased by nearly two years.  

For units, there was no change from last year, with a couple taking on average three years and five months to save a 20% deposit. In Canberra, first home buyers would need to save for an additional two years and seven months to save for an entry-level house versus a unit.

“While we have witnessed first-home buyers purchasing close to record numbers, taking advantage of low interest rates, tax cuts, and federal and state government incentives, those attempting to save for an initial deposit are facing challenges of their own,” said Domain senior research analyst, Dr Nicola Powell.

“Rising living costs, low wage growth, weak savings rates and rapidly rising property prices are all factors that immediately impact the opportunity for first-home buyers to enter the property market.”

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