This is based on their average earnings, including the 9.5 per cent superannuation guarantee and a $7,125 per annum co-contribution, and assuming returns of 3.2 per cent per annum. 

“For argument’s sake, let’s say they could have a deposit of $50,000 which means if they put down a 10 per cent deposit, they can purchase a property worth up to $500,000,” Mr Kusher said.

“Ultimately, a purchase price of $500,000 is not going to allow the potential buyer to access very many detached homes in Sydney and Melbourne.”

Only 4.1 per cent of suburbs in Sydney have a current median house value of $500,000 or less and 19.7 per cent of suburbs have a median unit value of $500,000 or less, Mr Kusher said.

“Gosford, Wyong and Blacktown are the dominant council areas for the locations of these houses,” he said.

“For units, potential buyers can make it close to the city but the closest they are going to get to the city centre is the Auburn and Parramatta council areas.”

Mr Kusher said with a budget up to $500,000, potential purchasers in Melbourne will have access to 18.7 per cent of suburbs for houses and 50.1 per cent of suburbs for units. 

“For a house, the closest you will find to the city centre in Melbourne is within the Hume council area close to the airport,” he said.

“For a unit, there are far more options and this budget would get you as close as central Melbourne with units in Melbourne, Kensington and Carlton having a median value of less than $500,000.”

Mr Kusher said the data shows that access to superannuation to purchase a home would largely help buyers outside Sydney and Melbourne.

“With Sydney and Melbourne being the housing markets most stretched for affordability, allowing first-time buyers is going to make little difference in affording these buyers with access to the housing market,” he said.

“Furthermore, accessing superannuation would potentially further add to housing demand which is already outstripping supply. This could potentially lead to even greater increases in values not only in Sydney and Melbourne, but potentially elsewhere as well.”