More Australians aspire to home ownership amid soaring prices
Despite significant house price growth, Australians’ appetite for property remained strong, hitting an all-time high in the first few months of this year, new data has revealed.
Almost one in six Aussies intend to buy a new home in the next 12 months, according to a NAB survey, which saw 15 per cent of respondents confirm their home buying intentions in the first quarter, compared with 13 per cent a quarter earlier.
Those intending to cash out on an investment property also increased, growing from 8 per cent in the last three months of 2020 to 9 per cent at the end of March.
Interestingly, according to NAB’s research, young Aussies are leading the increase in demand despite expectations for strong house price growth.
In fact, almost four in 10 (39 per cent) in the 18-29 group are saving to buy, while 26 per cent are renting but saving to buy.
Nationally, these figures are slightly subdued, with only 18 per cent of Australians saving to buy a home and 14 per cent renting but saving to buy.
“Young Australians are the most aspirational home buyers right now, and we’re seeing this with 25 per cent of applications now done via video, with thousands more booked online every month,” NAB executive for home ownership Andy Kerr said.
First home buyers and investors are also regaining confidence following the health and financial shock of the pandemic that drove a decline in interest last year.
“Over the past year, we have seen record demand from first home buyers, with NAB lending increasing by 67 per cent compared to 2020.
“We have also seen the return of investors this year as economic conditions have improved,” the executive said.
Looking at state and territory data, the intent to buy a home was strongest in the ACT at 22 per cent and lowest in Western Australia and Tasmania at 11 per cent.
Meanwhile, South Australian investors had the strongest intent to get back into the market, with 13 per cent scouting a property, while Tasmanians had lowest at only 3 per cent.
But while the intent to buy was higher, optimism was still subdued, with only 40 per cent of Australians confident that now is a good time to buy a home and a lower 31 per cent confident now is a good time to snap up an investment – lower than last quarter’s 45 per cent and 34 per cent, respectively.
Breaking down the data, South Australia, Western Australia and the ACT proved to be the most optimistic about home ownership, with 44 per cent of their residents saying now is a good time to buy.
On the other hand, Tasmania was least optimistic about buying a home, but was the most optimistic about buying an investment property, with 40 per cent saying now is a good time to invest.
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