ME’s latest Property Buying Intentions Report indicates demand for residential property may remain strong over the next 12 months despite prudential changes and tightening of lending criteria for some home buyers. The Report shows a big jump in demand for property by owner occupiers potentially offsetting falling demand by investors, while buyers continue to outnumber sellers.
According to the Report:
- In the six months to December 2015, the proportion of Australians intending to buy a property/home fell 1 point to 17%, matched by a correspondingly small fall in the proportion intending to sell a property/home (down 1 point to 7%). Buyers continue to outnumber sellers by more than two-to-one.
- Over the same six month period and among those actively looking to buy and/or sell property during 2016, there was a 5 point increase to 50% in the proportion looking to buy a home to live in (owner occupier buyers) offsetting a 5 point fall to 33% in the proportion looking to buy an investment property (investor buyers).
- Also among those active in the property market, planned sales by home owners remained unchanged over the six months to December at 26%, while there were fewer intended sellers of investment properties (down 5 points to 8%).
ME Treasurer, John Caelli, said notwithstanding other factors, the findings indicate property demand pressures from buyers may remain strong over the next 12 months. “While recent tightening in bank prudential regulations and lending criteria have reduced the proportion of investor buyers, overall demand for property may remain strong due to increased demand by owner occupier buyers. “Demand expectations from buyers may also remain strong due to unmet demand from owner occupiers supported by continued low borrowing costs and recent improvements in the labour market.”
Other findings
- 23% of Gen Y are saving to buy a property to live in and 25% intend to buy a property to live in in the next 12 months, the most of any age group.
- 10% of Gen X are saving to buy an investment property and 8% intend to buy an investment property in the next 12 months, the most of any age group.
- The proportion of first home buyers has increased slightly to 22% in the six months to December 2015, up 1 point.
- Of those actively looking to buy or sell a home to live in in the 12 months, 19% are downsizers, 22% are upgraders and 59% are looking for property with a similar price point.
About the House Buying Intentions Report
ME commissioned DBM Consultants to conduct an online survey of approximately 1,500 Australians aged 18 years and older who do not work in the market research or public relations industries. The population sample was weighted according to ABS statistics on household composition, age, state and employment status to ensure that the results reflected Australian households.
