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Demand for affordable housing set to rise
New lending rules introduced by APRA could increase the demand for units and townhouses.
Demand for affordable housing set to rise
New lending rules introduced by APRA could increase the demand for units and townhouses.
Australian property buyers are expected to shift their attention towards more affordable housing in the coming months, according to property investment company Wealthi.
Domenic Nesci, the director and co-founder of Wealthi, predicted that the Australian Prudential Regulation Authority’s tighter rules for home loans would lead to an increase in demand for units and townhouses as well as properties outside the major cities rather than a fall in prices.
“Things may slow down a bit as we see the regulators trying to use different soft techniques to cool down the market,” he said.
“Rather than suppress the mass market demand, I can see that the demand will shift into more affordability.”
Property investors and buyers may also be planning to take advantage of the spring property season and enter the market sooner than expected.
“The thinking is that it may be better to get into the market and buy now before more regulations kick in later,” Mr Nesci said.
The number of newly listed properties rose by almost 12 per cent in September, while prices are a record 20 per cent higher than they were a year ago after a 1.5 per cent rise last month.
Despite the possibility of a surge of buying activity in spring through to Christmas as lockdown restrictions are eased, Mr Nesci said that there was no need to rush when entering the property market.
“Buyers and investors still need to be prudent and selective when it comes to buying a property. While the banking system may tighten borrowing later on, you still want to invest in quality property,” he said.
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