Which NSW suburb offers the best value for first-home buyers?

Leading sales volumes three quarters running, this postcode is on the rise

Which NSW suburb offers the best value for first-home buyers?

Liverpool has emerged as New South Wales’ most active postcode for first-home buyers, topping InfoTrack’s Property Market Update for the first quarter of 2025.

The southwest Sydney suburb led in total property sales for the third straight quarter, reinforcing its status as a key entry point for first-home buyers and investors targeting affordable housing.

The growing demand is attracting interest from property developers. Forecasts from demographic analysts .id (informed decisions) project Liverpool City Council will add an average of 1,888 dwellings annually, reaching around 125,035 homes by 2046.

Vince Labbozzetta (pictured above), director of Raine & Horne Liverpool, attributed the strong interest to a combination of price, infrastructure and access to key amenities.

“We’ve been flat out — especially with first-home buyers,” Labbozzetta said. “Liverpool still offers value. You can find older-style apartments for around $400,000, which is less than what it costs to build new ones.”

Recent examples include the sale of a two-bedroom unit in Warwick Farm for $395,000 and another in central Liverpool that sold for $401,000, both to first-time purchasers.

According to Labbozzetta, buyers are travelling from across Sydney to secure homes in Liverpool, drawn by relative affordability compared to higher-priced suburbs. He noted that even though some local buyers remain active, many new purchasers come from further afield, often because rental prices in their current locations have become unsustainable.

“They’re being priced out of their current suburbs, and Liverpool offers a more realistic entry point,” he said. “That said, even rents are on the rise here too.”

Data from Money.com.au shows that nearly 10,000 first-home buyers in Australia have purchased properties with no plans to live in them in 2024, signalling a sharp rise in rentvesting — a strategy where buyers invest in more affordable areas while continuing to rent elsewhere. New South Wales leads the country in this trend, with 9.3% of first-home buyer loans being used for investment purposes. The state also posted the fastest national growth in first-time investor loans, up 31.4%.

Labbozzetta confirmed Liverpool is seeing an influx of these investor-buyers. “A lot of these buyers are first-timers,” he said. “Many still live closer to the city with their parents, but they’re buying in Liverpool as a more affordable way to enter the market.”

Some intend to live in the property temporarily before leasing it out, while others are rentvestors from the start, often aiming for rental yields around 5% and long-term capital growth.

“With the new airport on the horizon and planning underway on the FAST corridor linking the Liverpool CBD to Western Sydney International Airport, and the Westfield redevelopment, Liverpool’s future is looking strong,” Labbozzetta said.

Liverpool’s location also gives residents access to nearby employment hubs in Parramatta and Penrith, as well as major healthcare and tertiary education institutions such as Western Sydney University, the University of Wollongong, and TAFE.

“Liverpool has the infrastructure, services, and momentum,” Labbozzetta said. “If interest rates come down again on May 20, this market will shift into another gear.”

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