But significantly, they were not deterred from entering the property market despite high prices.

The bank said three of the top five areas for home buyers were in regional cities outside of Greater Brisbane: Toowoomba, Mackay and Bundaberg.

Also sought after places were Beenleigh, Yarrabilba, Springfield Lakes and Goodna.

NAB executive for home ownership Andy Kerr said Toowoomba was going from strength to strength and attracting families because of its access to Brisbane as well as its schools, laidback lifestyle and bigger housing blocks.

“With billions of dollars in investment coming down the pipeline on the inland rail link and a new Toowoomba hospital the garden city is shaping up an exciting place to buy and live.”

He said first home buyers were targeting the city’s suburbs of Darling Heights and Drayton.

However, separate data from Digital Finance Analytics has consistently shown Toowoomba to have the highest mortgage stress in the state.

But Kerr said first home buyers were taking advantage of softening prices.

He said first home sales were stable nationally and growing in some areas like Schofields in NSW.

“Many of these areas are also attractive areas for investors and have high growth over the past five years as well as good rental yields,” Kerr said.

“The popularity of these areas for first home buyers remained strong throughout 2022 and we expect to see steady demand early this year as first home buyers look to area representing the best value.”