Warrnambool first home buyers lower property expectations

In its October month in review report, it reveals agents in the city have noticed a change in the type of properties people are looking for.

"Through our conversations with local estate agents as well as would-be first-time buyers, there has been a striking change in both the mindset and practical planning and approach to entering the property market," the report states.

"The mindset, driven by negative experiences of the heated rental market and the still elevated building costs and wait time has resulted in a loosening of the previously strict criteria of wants in their first property."

The report states entry level houses in some areas of the city cost up to $650,000.

"We feel it would be out of touch to suggest this group of buyers will have, or require, this level of outlay," the report states.

"A more reasonable price point to approach this exercise would be topping out at approximately $530,000. "This top-end price point gives buyers the means to search out renovated brick dwellings featuring three bedrooms on allotment sizes typically in the mid-to-high 600 square metre range within the lesser, secondary locations of the city's north-west and north-east."

The comments come as Brian O'Halloran and Co director Brian Hancock last week said the number of properties on the market with a price of $600,000 or under was increasing.

The Standard also recently reported the city was among the least affordable in the state when it comes to rentals.

The Suburbtrends Rental Pain Index for September ranks Warrnambool south as number two - making the area the second least affordable in the state - behind Wheelers Hill.

Suburbtrends director Kent Lardner said it was not the first time Warrnambool had appeared in the index.

"Warrnambool showed up last time for the wrong reasons and it's showing up again," Mr Lardner said.

An online search on Tuesday revealed the cheapest three-bedroom home to rent was $500 a week, while the cheapest two-bedroom property was $350 a week.

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