Tahnee Gill and her dog Coco outside her Highett villa unit — her first-home, which her and her husband Andrew, bought last year. Picture: Nicki Connolly

Victorian buyers made up almost a third of the 23,273 Australians who took their first property plunge in the December quarter — the biggest proportion nationwide — according to Adelaide Bank and the Real Estate Institute of Australia’s latest ‘Housing Affordability Report’.

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The number of loans to first-time purchasers in the state jumped 9.5 per cent in the final three months of 2016, and they made up 15.2 per cent of Victoria’s owner-occupier market at the end of that period.

But Adelaide Bank general manager Damian Percy said the proportion was still “well below” the historical average of 18.5 per cent, recorded since the early 1990s.

But he said large land releases — notably the Victorian Government’s pledge to create 17 new Melbourne suburbs over the next two years in a bid to tackle housing affordability — could “be expected to improve opportunities to enter the market”.

Advantage Property Consulting director Frank Valentic agreed this move would give entry-level buyers more affordable housing options.

Mrs Gill lived with her in-laws for a year to save up for the home. Picture: Nicki ConnollySource:News Limited

He said while large numbers of prospective first-home buyers were active in Melbourne, many were struggling to land properties — especially houses being offered at auction.

“Their main challenge is catching the runaway train that is the Melbourne housing market,” he said.

“It had 17 per cent growth in houses prices last year — first-home buyers can’t save that fast.

“There’s also increased competition, particularly from investors and developers, and other first-home buyers.”

The report also found housing and rental affordability declined in Victoria at the end of last year.

The proportion of income required to meet loan repayments increased 0.9 per cent to 31.8 per cent over the quarter, and tenants are parting with 23.3 per cent of their income to pay median rents — up 0.4 per cent.

Andrew and Tahnee Gill moved back in with his parents for a year to save for the deposit on their first home in Highett.

“We were fortunate that we could do that,” Mrs Gill said.

The couple also managed to avoid the competitive auction process, snapping up their two-bedroom villa unit in a private sale for $599,000 last year — just under the stamp duty savings cut-off.

samantha.landy@news.com.au

Originally published as Victoria still No. 1 for first-home buyers