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
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more
Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more
Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more
Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more
Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more
Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more
Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more
Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more
Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
