Invest
Record number of home buyers squeezed out of market
While investment in Australia’s property markets remains hot, owner-occupiers are being priced out of the market, according to the latest data.
Record number of home buyers squeezed out of market
While investment in Australia’s property markets remains hot, owner-occupiers are being priced out of the market, according to the latest data.
Property research house CoreLogic data shows that while January 2017 was the hottest month since May 2017 recorded at $13.8 million, owner-occupier demand fell to a 12-month low.
“With investor and upgrader demand so substantial currently in the housing market, potential first home buyers are facing higher competition with other segments of the market which is clearly affecting their ability or willingness to participate in the market,” CoreLogic head of research Cameron Kusher said.
This investment boom produced a staggering 34.2 per cent increase in construction in January, as dwindling supply attempts to keep up with this demand.
Mr Kusher said first home buyers can no longer compete in the market with investors and homeowners, having reaped the rewards from an enormous run-up in property prices.
“Those that already own homes have benefited from the ongoing value growth across many regions of the country,” he said.
“Subsequently, those who already own a home have more housing equity and are able to pay more for those homes as an investment than first home buyers who are likely to be targeting similar properties for owner occupation.”
That’s managed to push first home buyer participation to a record low of 7.1 per cent of all housing finance commitments.
Compare that to investors’ 39 per cent share, or non-first home buyers 34.8 per cent, and the imbalance becomes evident.
“Given that owner-occupier first home buyer finance commitments are at an historic low, it is no wonder the federal government is coming under increasing pressure to do more to assist housing affordability,” Mr Kusher said.
RELATED ARTICLES
Property
Australian property’s quiet pivot: resilience hides a new competitive map
Australia’s housing market remains sturdier than the macro noise suggests, but the sources of resilience have shifted. For operators, the profit pool is migrating from ‘volume at any price’ to ...Read more
Property
Gen Z’s 5% deposit rush: how policy‑driven demand is reshaping Australia’s housing value chain
A government-backed 5% deposit guarantee has triggered a surge in first-home buyer intent among Gen Z, pulling forward demand and resetting competition across banks, brokers and buildersRead more
Property
Cautious bidders, smarter sellers: a Queensland auction case study on repricing risk
Queensland’s auction market has hit a caution cycle as buyers price in higher borrowing costs, global uncertainty and cost-of-living pressure. Clearance softness is forcing agencies to re-engineer ...Read more
Property
Trust, technology and triage: what NSW’s ‘name and shame’ signals for real estate governance
NSW’s latest enforcement action on real estate trust accounts isn’t a one-off embarrassment; it’s a stress test of sector governance. With licences suspended and penalties applied, the message is ...Read more
Property
Vacancy is rising, demand is resilient: A case study in defending yield as Australia’s rental cycle rebalances
After a blistering run, Australia’s rental market is loosening at the edges. Vacancy is edging up off historic lows, rent inflation is set to moderate into 2026, yet underlying demand remains ...Read more
Property
Don’t lose the deposit: A case study in stopping real estate payment fraud — and the ROI for doing it
Deposit redirection scams are quietly eroding buyer savings and agency reputations in Australia’s property market. This case study unpacks how a mid-tier real estate group redesigned its settlement ...Read more
Property
The $12m threshold: Why portfolio value, not property count, now defines Australia’s investor elite
The old yardstick of six properties as shorthand for investment success has been overtaken by a harsher reality: in today’s market, elite status is defined by balance-sheet strength, not asset countRead more
Property
From intuition to instrumentation: How a "two-stakeholder" sales playbook lifted close rates and cut cycle times
High-stakes consumer purchases are increasingly joint decisions. When one partner is under-served, deals stall. This case study follows an Australian real estate group that rebuilt its sales motion ...Read more
Property
Australian property’s quiet pivot: resilience hides a new competitive map
Australia’s housing market remains sturdier than the macro noise suggests, but the sources of resilience have shifted. For operators, the profit pool is migrating from ‘volume at any price’ to ...Read more
Property
Gen Z’s 5% deposit rush: how policy‑driven demand is reshaping Australia’s housing value chain
A government-backed 5% deposit guarantee has triggered a surge in first-home buyer intent among Gen Z, pulling forward demand and resetting competition across banks, brokers and buildersRead more
Property
Cautious bidders, smarter sellers: a Queensland auction case study on repricing risk
Queensland’s auction market has hit a caution cycle as buyers price in higher borrowing costs, global uncertainty and cost-of-living pressure. Clearance softness is forcing agencies to re-engineer ...Read more
Property
Trust, technology and triage: what NSW’s ‘name and shame’ signals for real estate governance
NSW’s latest enforcement action on real estate trust accounts isn’t a one-off embarrassment; it’s a stress test of sector governance. With licences suspended and penalties applied, the message is ...Read more
Property
Vacancy is rising, demand is resilient: A case study in defending yield as Australia’s rental cycle rebalances
After a blistering run, Australia’s rental market is loosening at the edges. Vacancy is edging up off historic lows, rent inflation is set to moderate into 2026, yet underlying demand remains ...Read more
Property
Don’t lose the deposit: A case study in stopping real estate payment fraud — and the ROI for doing it
Deposit redirection scams are quietly eroding buyer savings and agency reputations in Australia’s property market. This case study unpacks how a mid-tier real estate group redesigned its settlement ...Read more
Property
The $12m threshold: Why portfolio value, not property count, now defines Australia’s investor elite
The old yardstick of six properties as shorthand for investment success has been overtaken by a harsher reality: in today’s market, elite status is defined by balance-sheet strength, not asset countRead more
Property
From intuition to instrumentation: How a "two-stakeholder" sales playbook lifted close rates and cut cycle times
High-stakes consumer purchases are increasingly joint decisions. When one partner is under-served, deals stall. This case study follows an Australian real estate group that rebuilt its sales motion ...Read more
