Key takeaways
Despite facing pandemics, rising interest rates, and supply issues, the Australian property market remains strong and resilient.
The Westpac Home Ownership Report shows a significant surge in home buying intentions, with 44% of Australians planning to purchase within the next five years, a 9% increase since the previous year.
There is a rise in interest in apartments, while preferences for houses have dipped. Townhouses and house and land packages are becoming more popular, reflecting a move towards affordability.
Despite pandemics, rising interest rates, and challenging supply issues, the Australian property market remains a remarkably resilient, unyielding force, with two out of every five Australians determined to buy a home within the next five years.
A recent Westpac Home Ownership Report reveals a surge in home buying intentions – 44% of Australians plan to purchase within the next half-decade, marking a significant 9% increase since July last year.
This wave of buyers isn't just limited to first-home seekers; there’s a 6% uptick in investors and a notable increase in those looking to upgrade or invest in renovations.
Interestingly, new ABS data indicates a rise in Australians juggling multiple jobs – over 970,000 people are pushing their limits to save for a home.
This era of multi-job holders is marked by a wave of inventive side hustles.
Damien MacRae of Westpac observes a resolute focus among Aussies on their long-term housing goals.
He said:
“While some pause their plans, the underlying determination to enter the housing market is unflinching.
Buyers are increasingly willing to compromise and get creative to achieve home ownership.”
Among these compromises, location flexibility stands out.
Previously a significant hurdle, many are now open to relocating.
An impressive 75% are considering areas they hadn't previously, and 50% are exploring the 'rent-vesting' strategy.
Cutting back on daily luxuries, like food delivery, is another popular tactic.
In the shifting landscape of preferences, apartments are on the rise, increasing 7% in popularity over the past year.
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Interestingly, house preference has dipped by 5 percentage points over three years.
Partnering up for property purchases is another growing trend, with a striking 16% rise in couples buying together.
Even the prospect of Lenders Mortgage Insurance isn't deterring buyers – nearly half are willing to pay if it fast-tracks their first home purchase.
Townhouses have seen a doubling in interest, and the preference for house and land packages has quadrupled.
This shift seems more a move towards affordability than a reaction to the pandemic.
Mr. MacRae adds, “The pandemic did drive buyers away from cities in search of space, but now location flexibility is key for many to enter the market.”
He emphasizes the need to address supply shortages, given this resurgence in buyer confidence.
ABS's latest figures show a steady increase in multiple jobholders, particularly among women and younger workers.
Most secondary jobs align with the primary industry, spanning agriculture, construction, education, health, and more.
Thesmallbusinessblog.net highlights the popularity of side hustles like Uber driving, dropshipping, and various freelance roles.
These gigs offer flexibility and an opportunity to supplement income, crucial for many aiming to break into the housing market.
In conclusion, Australians are resiliently navigating the complex real estate landscape.
Their adaptability, willingness to compromise, and innovative approaches to saving are testament to their determination to achieve the dream of home ownership.
